No. of Recommendations: 2
Hi rhit,

So, am I correct in thinking that this saves me $2142-$299=$1843 or am I missing something?
If all you are considering & measuring is what you have detailed here, yes you are missing quite a bit.

You appear to be entirely focused on the money you'll "save" by rushing the end of your interest payments, and appear to be ignoring the money you'll lose by channeling money away from your compounding growth opportunities, as well as the cost risks of reaccessing your cash if you bury them into illiquid real estate equity (by accelerating the elimination of your leverage.)

When/if you fully understand the bigger picture, you're far more strongly advised to take the longest amortization terms available (30+ years) on as much of your real estate value as your reliable cashflow and reserves will safely support (85-90% if possible,) and accelerating the accumulation of a liquid, compounding, long-term-positioned growth account.

By doing so you'll actually eliminate the liability of your mortgage FASTER than how you are going about it now, as you'll reach the point where you *COULD* simply stroke a check to pay off the entire amount (even if you increased it to 85-90% of your home value) sooner than you will by sending smaller checks each month.

Dave Donhoff
Leverage Planner
Print the post  


Useful Resources
Our Home Center has all you need to make buying and owning a home a great experience. Get or refinance a mortgage and much more!
Buying/Selling a Home FAQ

Mortgage Professor
Offsite resource for mortgage questions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.