Get yourself a 'Mortgage Pig'

Lotta_Littlies

I just used the egg calculator and tapped in my overpayment in the "using my savings" box.

http://new.egg.com/visitor/0,2388,3_54988--View_1028,00.html

Lotta

keld

Hi,

I've been reading this thread for a while and I've just found my old childhood piggy bank. I've renamed her 'Prudence' not very original I know and put her by the kitchen door, so that she gets fed regularly. (I'd already started to overpay £250 by DD so its gone and I can't spend it.) My husband thought I was barmy at first, but when I showed him this website, he soon changed his mind. Our aim is to be mortgage free by 45 (7 years time) or sooner if possible. Thanks for the motivation.

OverlandLandy

pigpen wrote:

question.. How do you calculate how much interest a payment made now would save you?

eg.. pay £100 now.. interest rate 5% x length of mortgage remaining (23 years 6 months).

It's just IF I calculated this correctly I just saved a massive £718.55 by paying £29 now!!

A VERY rough guide is for every £1 you pay off now will save you £1 in interest. The closer you get to redemption-the less effect it will have...but don't get hung up on % - money is money!

The sooner you pay - the more you save!

This is based on a 25yr mortgage for £100k @6%
£100k advance = £93287 in interest! OUCH!

A QUICK TIP; Make sure when you 'pay money into your mortgage you specify that you are making a 'PART REDEMPTION'. This is important as it has the advantage of reducing your mortgage with immediate effect.........not in xxmonths time when your annual statement/account is reviewed!

pigpen

The money is taken off immediately they receive it.. and interest is calculated on an annual basis.. for some reason... but it works for me lol. I alreaydmade certain of that.. if it wasn't calculated until the end of the year I realised I would be better off paying something else with a higher interest rate caluclated monthly/daily.

I just have so much to pay off I want to do it all right now and obviously do not ahve the money to do it all now.. I even toyed with the idea of a consolidation loan for the rest of the money we owe, but it seems a bad idea even to me with no brain! though the thought of one payment and one interest rate does seem very appealing! It would free up the extra cash to buy food.

would it be really bad to do this? (like my head thinks it will)

SkintMonkey

Well, I feel a bit of a lemon because this post has been around forever and I've only just found it! Well I read it all (I think) last night and I'm inspired! I have a little fish money box, but it is small and I want something a lot bigger to inspire me.

Husband and I did a bit of surfing last night, but have decided that we are going to go out and look for one tomorrow in town - he has given us a strict budget for it and told me that I can't have the huge cow piggy bank I want which is something like £9 plus £9 p&p.

Anyway, thanks for the inspiration!

Suzie_Wing_Wong

Hi All,
One year ago on the 1st of February I bought my husbands half of our house and started a new life as a single Mum.
Initially I was just pleased that I could actually afford my own mortgage.... but then I found this thread and was inspired.
When I took out my mortgage I took it out over 33 years, just to make sure I could cope with the repayments, but then I found you lot!!
I started saving any money I got from doing over time at work; I saved any money I got from selling things on Amazon, Ebay and at car boots; and I saved any money I got from using coupons on my grocery shopping. All of this money went on overpaying my mortgage.... £2000 in a year.
Not satisfied with this I have also increased my monthly mortgage payments twice now, and am currently overpaying by £88 each month as well.
So thanks to all the inspiration I got from you amazing lot, I have reduced the term of my mortgage from 33 years to 22 years in just 1 year.... not bad for a single Mum working two part-time jobs!

So Thankyou, Thankyou and Thankyou again, I couldn't have done it with out you!!!

Suzie

pigpen

Suzie.. well done!!!!! that is fabulous.. an inspiration to us all!!!

Lotta_Littlies

That's so inspirational Suzie! Well done and keep it up - you're doing so well!

Lotta

comping_cat

WELL DONE SUZIE - that is amazing, im also a single mum, and ive managed to get my mortgage down from 27 years to 23 years in just under a year, will be able to see what it is properly in March when my next mortgage statement comes, and then i will see how well i did in a year!!!

GirlRacer_2

Hey you single mums, well done. I'm a single mum and paying extra off my mortgage has just never crossed my mind. Am currently working on becoming debt free and when I do, I'm going to join in on this thread. Not got a lot of debt just want to pay it all off. I'll be back......