When we purchased our home we decided to combine the property tax with our mortgage. We preferred it that way, so as to not have an unexpected thousands of dollars worth of property tax show up some time in the year.
It is also a common occurrence for your first payment to be more than a month out after closing. With interest accruing. tsk. tsk.
So our first step was making our first payment as soon as possible, which ended up working out to be a month in advance. Keep in mind if you do this then you can’t be set up on automatic payments. When I go in to manually pay, I always make sure I mark the box to pay the next months payment now.
The other and bigger thing I feel that we did, was to round-up our mortgage payment. So for the first year of home owner ship we were only adding an extra $15 to our mortgage. It seems so miniscule but between that and being a month ahead in our monthly payments, by the next year and a month early, our base payment amount had decreased. Granted our escrow account is also tied to that, we were still able to round-up to the same number but this time adding $28 to our mortgage principle, instead of $15. Make sure you are adding it to the principle and not to escrow.
If you’re a Dave Ramsey fan, I know he tells you to not do this. While we do have some debts still. The $15-30 in extra payments we were making were worth it for us, while we were still able to pay other items off.
I hope that what I have shared encourages you to reduce your mortgage debt.
What other ways have you thought of to pay your mortgage down?