If you choose to put it in a piggy bank for a rainy day, it will come to a time when your piggy bank will be equal to or greater than the mortgage you owe and will one day be able to pay off the mortgage in a lump sum when the rainy day comes.
So cautiously save a nest egg for a rainy day today, while you get enough cash to pay off the mortgage later in a lump sum later on
Since I’m only on the 13th payment of a 360 payment (30 year) mortgage, every $100 I pay now saves my about $139 in interest.
Calculate your savings for a single $100 additonal payment this way: $100 times the interest rate, divided by 12, times the number of remaining payments on your mortgage.Continue reading