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["Lisa K.V. Perry" <lisakvperry AT gmail.com>]

On 7/23/06, Lynn Wigglesworth <lynnw AT chilitech.net> wrote:
> <snipped throughout>
> I took a 30-year fixed rate mortgage with a
> monthly payment that I can (almost) afford.
>
> I''ve already decided that I can't retire until the mortgage is paid off.


Lynn,

As your monthly debt decreases over the years, and hopefully it will, put
some extra towards the principal.  I know you're very frugal; but if you
have a car or truck payment or any other loan, or any credit card debt at
all, as it's paid off, put extra towards the mortgage principal.  By doing
this, even $25 per month turns into  an extra $300 annually on the principal
and it will reduce the life of the loan.

One extra payment per year will typically reduce the mortgage by 7 or 8
years.

In the early years of a loan, most of what you're paying is interest.  Take
a look at the actual principal amount that is paid (warning:  this may make
your stomach turn to do so).  Another way to drastically shorten the life of
your loan is to pay an extra principal payment (not the interest) every
month with your regular  payment, this will cut the loan almost by half the
time depending on when you start.  If you can't afford this every month,
then do it now and then as you can.

Hope that helps you to quit working before 80.  Smile.

Lisa