Should i pay additional principal

Related Articles Credit What credit is and how to get it How to boost your credit score for lower interest rates. Apply for a Credit Card. Related Articles What to know about using a digital wallet The many ways to pay. Download Our App. Print this page. Paying extra on your mortgage principal: is it the right option for you? Share Facebook LinkedIn Twitter. Tags Home. Careers Careers. Security Center Security Center. Other Links Other Links. Facebook You are now leaving the Commerce Bank website.

Never share your personal information on Facebook. You are now leaving the Commerce Bank website. Never share your personal information on Twitter. Never share your personal information on LinkedIn. Maintain these additional payments over an extended period of time and you'll likely eliminate several years from your term. A quick note here: there is no best day of the month to pay your mortgage. Both the principal and interest amounts decrease over time, whether you make payments on the 1st, 15th, or a date in between.

Did you just receive a large commission check at work? Were you the beneficiary of an inheritance? In any case, it's always smart to apply these "unexpected" funds toward your mortgage. Putting this strategy into practice won't break the bank, but it will help you own your home faster. Imagine no longer having a mortgage payment. You would have the flexibility to travel, explore new hobbies, or even retire sooner than previously expected. It's amazing how much more breathing room you have in your budget without needing to account for a mortgage payment.

Now's the time to be done with debt, for good. We're talking about credit cards, personal loans, car loans, and student loans. Paying off your mortgage early gives you the chance to tackle other kinds of debt and improve your financial profile overall. Why stress over the constant ups and downs of the housing market? Once you pay off your residence, you won't have to worry about home prices ever again. There's also comfort in knowing that your family is taken care of during a financial crisis.

It ultimately comes down to your specific situation. Planning for retirement Choosing a financial professional Retirement planning Investing resources Downsizing Income in retirement. Personal Business. Homeowners Coverages Discounts Claims. Get a quote. Resources Home. Enter your 5 or 9 digit ZIP Code.

Get a quick bundled quote » Continue a saved quote » Find an agent ». Refinance your mortgage If interest rates decline, you may be able to reduce the amount you pay toward interest by refinancing your mortgage. Make extra mortgage payments Another way you may be able to save money on interest, while reducing the term of your loan is to make extra mortgage payments.

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Learn More. This one financial move can help real estate investors save a ton of money. Real estate has long been the go-to investment for those looking to build long-term wealth for generations.

Let us help you navigate this asset class by signing up for our comprehensive real estate investing guide. If you're familiar with the world of real estate financing , it should come as no surprise that making an additional principal payment is often a smart decision.