My wife and I got pre approved to buy our first house today!!!! We already have one picled out in our price range and hopefully will be making an offer in the next week or two. Very excited!!

Cliff

Congratulations.... count your blessings that this is your first one instead of 5 years ago before everything crashed. You're probably getting a heck of a deal. Best wishes as you start making lifelong memories in your new home!

I feel like this is a good time to break out the dancing penguin.

CONGRATULATIONS!

Congrats Red!! Enjoy it in good health.

Congratulations. Want to save some big dollars on your total interest payments and pay the loan off sooner? Get an amortization schedule for your loan. If the bank won't provide it, you can get one on the net at no cost.

Here's an example of how it works. The following amortization schedule is for a hundred fifty thousand dollar mortgage for twenty-five years at four and a half percent interest. It breaks down each payment showing how much is for interest, and how much is applied to the principal.

Whenever you can, include the next month's principal payment along with your regular payment. That saves you the interest that would be part of your next payment. You will still have to make a monthly payment, but you have wiped one payment off the books. At some point, it does not become feasible because most of your monthly payment will go to the principal. The following shows the breakdown at the start and at the end.

Notice, the repayment of the mortgage is "front loaded". That means the bank gets their interest first and foremost. Prepaying the next month's principal and eliminating that interest is why you can save a ton on interest.

When you make your March payment, if possible add 272.27 to it. That will save you 561.48 dollars in interest. You will still have to make a payment in April, but that becomes the May payment of the schedule above. If possible do the same including an additional 274.31 (the principal of the June payment), and save 559.44 of interest. Each time you do this, you will have your home paid off one month earlier. In two months, you will have wiped out over 1100 dollars in interest payments.

But at some point as the amount applied to the principal increases the payment may become too much, and the savings not worth it. See the breakdown at the end of the loan below.

Be sure to let the lender know if you decide to do this. Some will want you to make the principal payment in the exact amount, so they don't have to recalculate the amortization schedule. Check to see if early payment of the mortgage carries any penalty.