Good points about checking lender rules—I've run into that myself. Another thing I've wondered about is timing: do you guys think it's better to toss in those extra payments randomly whenever you have spare cash, or wait and make one bigger lump-sum payment at the end of the year? I've heard arguments both ways, but curious if anyone's actually crunched numbers or noticed a real difference...
"do you guys think it's better to toss in those extra payments randomly whenever you have spare cash, or wait and make one bigger lump-sum payment at the end of the year?"
I've actually run the numbers on this for a few clients, and generally speaking, earlier is better. Interest accrues daily on most loans, so tossing in extra payments whenever you can reduces your principal faster, saving you more interest over time. The difference isn't massive, but it does add up. Plus, psychologically, seeing that balance drop regularly can be pretty motivating... at least it was for me!
I agree with this completely, especially the psychological aspect:
"Plus, psychologically, seeing that balance drop regularly can be pretty motivating..."
When I first started paying down my mortgage, I felt stuck too—like I was just spinning my wheels. But once I began making smaller extra payments whenever I had spare cash, it felt like real progress. Even if the math difference isn't huge, the mental boost of seeing your principal shrink regularly is worth it on its own. Hang in there... you'll start noticing the difference soon enough.
I get the psychological boost you're talking about, but I'd be cautious about throwing extra cash at the mortgage without first checking other financial priorities. For instance, do you have an emergency fund set aside? Or maybe higher-interest debts like credit cards or personal loans? Sometimes tackling those first can actually save you more money in the long run. Just something to consider before jumping into extra mortgage payments... everyone's situation is a bit different.
Totally get your point about prioritizing higher-interest debts and emergency funds first. But sometimes, there's more to it than just numbers. I had a client once who was in a similar spot—felt like he was spinning his wheels paying interest only, never seeing the principal budge. He decided to put just a bit extra toward the mortgage each month, even though mathematically it wasn't the absolute best move (he still had some moderate-interest loans). But psychologically, it changed everything for him. He felt motivated seeing that principal shrink, even slightly, and it actually encouraged him to budget better overall.
So while it's definitely smart to crunch numbers and prioritize carefully, don't underestimate how powerful that mental boost can be. Sometimes the right financial decision is the one that keeps you motivated and moving forward... even if it's not strictly textbook-perfect.
