05-21-2004, 10:36 PM
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Multi-Sexual
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Join Date: Mar 2003
Location: Michigan
Posts: 1,244
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Quote:
Originally posted by Kissy
This is the time of year that our taxes on our house come out of our escrow account and then we get a summary of our mortgage. We've lived here for about 2 1/2 years. We pay $630 a month on our mortgage. Guess how much equity we have in our home.....
$800!!! I thought I understood that most of the money goes on interest, but I had no idea just how much does! 
And I can't think of the last big purchase but I'm going to just make a guess that it was for the kids since that's about the only time we can rationalize spending very much! Well and we've been so broke for so long now! Lol
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All your monthly's go straight to interest. Check with the company on overpayment stipulations. Some loans say that overpayment goes to the interest, while others say it goes to principle, and still others say that it has to be at least X amount before it'll go over to principle.
If it allows you to, even $25-50 extra per payment will help bring the principle down a lot. Then, if you get bonuses or what not, make larger lump sums towards the principle. |