What happens if I pay 10% extra on my mortgage?

So, what happens if I throw an extra 10% at my mortgage each month? Gosh, I’ve been wondering that myself, lately! It’s a big question, right? I mean, it’s extra money, money I could be using for…well, a thousand things. But…

Paying that extra 10% really speeds things up. Like, seriously speeds things up. It’s all about paying down the principal faster. Think of it this way: the interest is calculated on your remaining balance, so the smaller that balance gets, the less interest you pay overall. It’s amazing how much that adds up. I read somewhere – I think it was a blog, or maybe a magazine – that even a small extra payment can save you thousands in the long run. Thousands! Can you believe it?

I remember my aunt, bless her heart, she did something similar. She was super disciplined about it, and she paid off her house years ahead of schedule. She was so proud, rightfully so. She used that extra money she wasn’t paying in interest to travel, to spoil her grandkids… it completely changed her retirement plans.

The key is to make sure that extra money actually goes towards the principal, not just to the next payment. You gotta explicitly tell them, “This is for the principal!” Otherwise, it might just get absorbed into the regular payments, and you won’t get that awesome principal reduction. It’s a little detail but, you know, details matter.

So yeah, paying 10% extra on your mortgage? It’s a big deal. It can save you a fortune, honestly. It’s a long-term commitment, sure. But just thinking about my aunt and her travels… well, it makes me think it might be worth it. At least, it’s worth considering, right?