The short answer: it depends on your loan balance and interest rate, where to invest 100k for 1 year generally the higher extra payment is going to result in a faster payoff. 200,000 loan balance, 15-year fixed rate mortgage, and 5.
Now you may be wondering if there is any advantage in making extra monthly payments throughout the year rather than waiting until the end of the year. Also, why would you want a 15-year mortgage? Generally, 15-year mortgages will offer a lower interest rate. Still, there is something attractive about paying off a mortgage in 15 years.
You want to save as much in interest as possible and you want to be debt-free as quickly as possible. You are saving and investing regularly. You don’t want to think about accelerating your mortgage payoff anymore. To me, the 15-year mortgage offers a built-in acceleration. If anyone is clamoring for a spreadsheet to do your own calculations on a 15-year fixed rate mortgage, let me know and I’ll upload one. Or check out my 30-year mortgage schedules at DIY Mortgage Acceleration. Disclaimer: The links and mentions on this site may be affiliate links.
But they do not affect the actual opinions and recommendations of the authors. Wise Bread is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon. 50’s, have found the home you want to remain in for the forseeable future, and expect, all things being equal, another 15 years of income as opposed to another 30 years. Yes, I know there’s many a slip . We are still in our first house, which we purchased in 2001 just before we got married. Our first loan was for 30 years at 7. 4 years into it and are looking at paying our home off before we’re 40.