Mortgage discouragement

When you look at your mortgage and see the remaining balance, you may feel discouraged.  Some will say, I have been paying my mortgage payment for years and still do not see it decreasing by much at all.  Even if you are adding more money to the principal, in the beginning it may appear the balance is decreasing very slowly.  This is when most people will reduce their payment to the minimum each month and by doing this, you can be certain the remaining balance will move like a snail throughout the rest of mortgage’s days.

My previous blog titled Mortgage Removal briefly talks about paying off your mortgage as quickly as you can.  I discuss how financial advisors may tell you to invest your money in other investments instead of putting extra money towards your mortgage.  I strongly believe in most cases, putting your extra money towards your mortgage is a better investment.  Although this is an interesting topic, I want to really dig into the discouragement of a mortgage balance not moving fast enough.

Since I purchased my home I have always been consistent in putting the same amount of extra money towards my principal each month.  I am adamant about not reducing the extra principal payment throughout the year.  I only change this amount in January when a new year starts.  At that point, in the new year I increase the amount of money I put towards my principal.  Just as an example, if I am paying $250 extra on my principal in 2017, I may increase my extra principal payment to $350 starting January of 2018.  In 2019, I may add another $100 to my total principal amount making it $450.  I would never decrease my extra principal payment unless unforeseen circumstances forced me to do this.

The important thing is to remain consistent and not get discouraged.  In the beginning, the principal will reduce at its’ slowest rate.  As you progress through the life of the mortgage, I assure you will see faster decreases.  It is important you keep going and remind yourself that it is important you continue paying extra towards your principal.  This will help you build equity in your home, which I would advise you not to use.  It is just a nice to have in my opinion.

Let me know your thoughts on this.

One Comment on “Mortgage discouragement

  1. Pingback: C.A. progress thus far – Civil Accomplishment

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