So we paid an extra $1,000 to our mortgage this month. They received the payment today. The extra money took 5 months off the term of our mortgage. 5 months! I’m so excited. That is a savings of $3,600 in interest. I love it.
There is some disagreement as to whether or not it’s a good idea to pay off your mortgage early.
Here is a site that gives the pros and cons of paying it off. For me the security of owning my home outright is what makes it worth it. I know it’s not for everyone.
Another bonus is that it puts our outstanding balance under 78% of what we paid for our home. Which, from what I understand, means they have to take off the PMI. I put in a request today have it removed. They better take it off! I’m going to lose my mind if they don’t. I have researched this a great deal and everything I read says they have no choice but to remove it at this point. So hopefully this is the case and it comes off with no trouble.
Here is the website for the FTC. They have an explanation of the law and a place where you can file a complaint if your mortgage company isn’t following the rules. No need to pay PMI for one extra month if you don’t have to.