Expert strategies to optimize your mortgage, build wealth, and achieve financial freedom
Start with just $50/month extra on your mortgage. This small step can save you thousands in interest while building your confidence in making overpayments. Once you see the impact, you can gradually increase the amount!
Round your mortgage payment up to the nearest $50 or $100. If your payment is $1,847, pay $1,900 instead. This simple strategy adds $53 extra per month and can save you over $25,000 in interest!
Instead of 12 monthly payments, make 26 bi-weekly payments (half your monthly amount). This creates the equivalent of 13 monthly payments per year without feeling the pinch.
Apply unexpected money directly to mortgage principal:
Before extra mortgage payments, save $1,000 for emergencies. Once established, work toward 3-6 months of expenses. This prevents you from going into debt when unexpected costs arise.
Pay off credit cards, personal loans, and other debt above 7-8% interest first. The guaranteed savings from eliminating 18% credit card debt beats mortgage overpayments every time.
Contribute enough to your 401(k) to get the full employer match. This is free money with immediate 100% returns - better than any mortgage savings.
If your mortgage rate is above 5-6%, extra payments make great financial sense. If it's below 4%, you might earn more by investing the money instead.
Always specify "principal only" when making extra payments. Otherwise, lenders might apply it to future payments instead of reducing your balance.
Before making extra payments, ensure you have the best rate possible. Refinancing from 7% to 5.5% might save more than overpayments.
Consider a HELOC for emergency access to your equity if you're making large extra payments. Maintain liquidity while paying down debt.
Once you have your financial foundation, split extra money three ways:
This balanced approach lets you pay down debt while building wealth and maintaining flexibility.
Invest in skills that increase your income. A $1,000 course that helps you earn $200 more per month provides far better returns than mortgage overpayments. Use increased income for accelerated debt payoff.
Set up automatic transfers to make extra payments effortless:
Remember: Small, consistent actions compound into massive results over time!
Aurebay's strategies have helped thousands of homeowners save tens of thousands in interest. Your journey to financial freedom starts with a single extra payment.
Calculate My Savings Get Personal Advice