Mortgage questions: extra payment strategy?
when we bought our house the mortgage broker gave us a handout that said that if the first year you pay 10dollars extra a month and 500 after your tax return, and then the second year you pay 20 and 500, third year 30 and 500, etc etc you can turn your 30 mortgage into about a 15-16 year mortage. Anyone else year of this strategy??? seems too good to be true…. just adding an extra 10 dollars a month yearly you don’t notice it much she says…. by year 14 or so you would be doing 140 extra a month but since its just 10dollars more a month than the year before big deal right…..
I can see the strategy cutting out ALOT OF years…. but do you think it really cuts it in HALF? seems a bit much