June is about to hit in the old household account and I started to look at some of the bills that are appearing for their annual 1st of the month opening.
One of the biggest bills every month is the lovely mortgage payment. Its great to own a home since in theory and practice its value has increased. Just don’t remind me of that leak over the kitchen sink thats going to need to be repaired soon, like yesterday according to the wife.
But with the bills I noticed that the mortgage company sent along a statement. If you ever take the time to sit down and look at your mortgage payments you’ll notice that the bank is making some major cash over the term of your mortgage. I’m thinking its about time people realize that they need to pay of your mortgage as soon as possible. Just forget about saving a few dollars every month and start looking long term.
The thing is that once you look at how much you pay over the whole term of your mortgage you realize that you’re in the wrong business. You should be in the mortgage business. Those super long term mortgages may save you a few bucks every payment but by the end of its term you’ve spent thousands of dollars extra. Even simple things like changing your payment schedule to bi-weekly will help you pay of your mortgage several years earlier. You might be short a few bucks every month but you’ll be way ahead by the end.