> Mark, > Thank you for the compliment, re: great info. > With no pre-payment penalties, you can pre-pay the principle each month routinely. To > make the sacrifice more palatable, review the amortization schedule. Look for next > month's entry. The principle amount that will be due next month will be clearly stated. On > the same line will appear the interest amount that will be due next month. For every pre- > paid principle amount you make, you automatically save the amount listed as interest for > that same month ! By viewing each month's extra principle payment and the interest > saved, one can gain satisfaction from the process. > I suggest writing a separate check for the extra- principle payment, and clearly > stating on the check that it is to be applied only to the principle balance. If you send a > coupon with your regular mortgage payment, write the extra- principle payment amount in > the appropriate box on the coupon, and send both checks and the coupon together. That > way you prevent the mortgage administrator from erroneously applying your extra > principle payment incorrectly, (such as to your escrow account, where it will not give you > the effect you seek). You might want to check out 'The Banker's Secret', by Mark Eisenson, > Villard publishers. It gives motivation to pre-pay mortgage interest. > Your monthly statement might reflect your pre-payment actions. If not, Every > couple of years, you can request a payment history to give you comfort that your actions > are recorded properly by the mortgage administrator.
mainstream Again thanks for this. I'll go ahead and do as you suggested regarding how the payments are posted. I'm using an automatic payment from a checking account but will make sure the payments are applied to the principle. I'm not taking any tax deductions at this time because I have no taxable income. Take care, Mark
