Prepaying Your Mortgage? Check the Numbers

Prepaying your mortgage allows you to pay less in interest.  By making additional payments, you chip away at your loan balance and save money.

If you pay down debt early, be sure to check on your lender's math.  The process is confusing, and sometimes lenders don't do what you think they'll do with your extra payments.

Consumerist shares a story about a mortgage prepayment surprise:  a borrower sent in cash only to find that the payment did not immediately go towards principal.  The result?  The lender charges more interest.

Check with your lender before and after making additional payments -- if there's real money on the line it's worth your time.

Further reading:

• Why is my Mortgage Payment Still so High?