Community Magazine

The Power of Extra Mortgage Payments

By Eemusings @eemusings

Lots of personal finance bloggers, especially after becoming debt-free, say saving is boring.

I don't get it.

The power of extra mortgage payments

I love watching my money grow and the numbers tick up. There's nothing better - except cheesecake, maybe.

I'm a bit of a hoarder in real life, so maybe it's not surprising that I also like to hoard money (real or otherwise - sometimes I think wistfully of all the Neopoints I had banked back in the day).

I was so resentful of my consumer debt, basically because I didn't actually get anything out of it. It was all incurred while supporting an unemployed partner - less consumer debt and more keeping up with bills, really.

But now that I have a mortgage, I just might be changing my tune. It's a different story as I deliberately took on this debt, plus the payoff is so much bigger.

I don't mind my mortgage as I wouldn't have a home without it, but I'd like to minimise the massive effect of compounding interest working against me.

The $3,000 in extra lump sum payments I've made? Apparently saves over $9,000 in interest over the long run.

I get it now...!


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