Expert: Bobbi Buehl - 3/28/2008

Question
QUESTION: Is it true that you can save interest and pay off your mortgage earlier if you split your payment and pay it twice a month instead of once?

ANSWER: Kathleen,

Yes, its true! You can also knock 3 years off a 30 year mortgage, if you make an additional payment toward principal when you make your very FIRST payment. You have to do this on a separate check and write on it "toward principle only."

Hope that helps.... : )

Thanks,

Bobbi

---------- FOLLOW-UP ----------

QUESTION: Thank you Bobbi.  I am curently into the third year after refinancing my home to a 30 fixed.  Is it too late now? By the way, these spam guard characters are very hard to read. Please pass that along to those in the know.

Answer
Kathleen,

You can also knock off how long it takes to pay your home off by making additional payments toward your principal each month. Keep that one in mind, since 1 extra payment a year (total) decreases your mortgage about 2 years over the life of the loan.

Have a great one!

Bobbi