House Payments
House payment 700/month. Dont plan to get there. Should I make extra payments to have less to pay off later?
We have lots of extra money after saving and investment. If we only paid 53 dolalrs extra a month we would have nearly 5,000 less to pay on the house in seven years. I dont think we will stay in this house more than 10 years. Is it worth paying a little more montly now and have more money to go toward a down payment on a new house later?
The usual way to do this kind of decision is to look at the interest rates on other outstanding debt – credit cards, etc. and pay the person who has the highest interest rate. But in this economy with housing values dropping like lead weights, I think it is a good idea to pay down the principle on your mortgage if you can. We do that as quickly as possible, and it gives us little peace of mind with regard to a possible lower rating on the property in the near future.