Thursday, April 10, 2008

$6,000 per year to save

Can we save $6,000 per year extra to pay towards our mortgage? In April 2009, April 2010 and April 2011, I would like to have 6 grand set aside to pay down our mortgage. Can this be done or is it too hard of a concept to grasp? Certainly if I wait until April 09 I will not have the money saved. But if I break it down to a weekly amount of $115 per week I think it would be more doable. Yeah! Paying off the mortgage even faster would be exciting. $115 is really not a lot of money. If needed it could come from savings but better shopping practices, eating out less often etc. will help also. I easily paid off my car lease and car loan but the mortgage is a much longer and harder to stick with goal.
I currently have $250 per week being sent electronically to our mortgage company to pay down the principal. I could add the $115 per week to this or save it in a separate account. If I save it in a separate account I might decide to use the funds elsewhere. Not a good plan. The best way to handle it would be to use existing paychecks and pay it at the same time as the other principal payment.
Any ideas?


R said...

No ideas, but let me know what you work out. An extra $115 a week is not doable for us at this time (we're still getting out of our credit card debt), but how did you work out for the $250/week to be sent electronically to your mortgage? Was that through the mortgage company or did you do this somehow on your own?

Motherhood101aplus said...

@R. We do a separate on-line check to the mortgage company and put principal payment in the memo line.

When doing principal payments for car leases and car loans sometimes the principal payment needs to go to a separate address. For the lease we were fine but I had to send a manual check for our auto loan to a separate address when doing principal payment reductions.
Thanks for reading!