Aug 26 • Daily Wealth Switches
🏡 Make one extra mortgage payment per year.
Making just ONE extra payment per year on your mortgage, can take YEARS off your loan.
Even if you split it into 1/12 extra each month, it cuts 5–7 YEARS off a 30-year loan.
That’s tens of thousands in avoided interest.
Here's the formula:
(Monthly Mortgage Payment / 12) + current monthly payment = New monthly payment
Here's some examples (because most are lazy and won't do the math themself)
- Current mortgage = $1,500 month 👉 Pay $1625 every month
- Current mortgage = $2,500 month 👉 Pay $2,709 every month
- Current mortgage = $3,500 month 👉 Pay $3,792 every month
This is what it looks like with today's home prices and interest rates.
- Original mortgage: $425,000 at 6% interest (30 years, plus $200/month for taxes & insurance).
- Normal payoff: 30 years.
- With 1 extra payment per year: Paid off in about 24.75 years (~24 years, 9 months).
- Time saved: Over 5 years off the mortgage.
By just making one extra payment per year they’d shave off more than 5 years of payments.
Here’s the side-by-side:
- Normal 30-year payoff: $492,312 in interest paid
- With one extra payment per year: $392,937 in interest paid
- Savings: $99,375 in interest, plus the mortgage is paid off 5 years faster.
That’s nearly $100k saved and 60 fewer mortgage payments — just by adding one extra payment each year.
👉 Who here has tried this? If so, let us know how it worked for you in the comments.
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🏡 Make one extra mortgage payment per year.
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Money is broken, Wall Street is a casino, and Uncle Sam loves taxes. This will show you the RIGHT things to do with however much money you make.
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