Submitted by paperwasp3 t3_10vt2gi in LifeProTips

LPT- When you make any extra payment (even if you round up a little on your monthly payment) make sure to instruct your bank that it goes towards your principal. Otherwise the mortgage company, or bank, will automatically put it towards your interest. This doesn't save you any money. When you apply any extra money towards your principal you save money on the back end in interest. One extra mortgage payment per year can cut your mortgage from 30 years to 22 years. And as an extra bonus it really steams your bank when you know this. How great is that?



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