Maybe you were asking about the second part of my post. The reason to pay it off early is because after you make a monthly payment of, say, $450...... you ALSO send in, that same month, additional money ($100 ?) that you stipulate is to reduce only the amount of your remaining principle.
This will not necessarily make the $450 payments you agreed to any smaller, but it WILL mean that your actual intrest payment will be more like $430 that next month... then $405 the next month, and so on, dropping each month (providing you keep up the extra payment)
At the end, you will not have sent in $450 every month for a full 15 years. But, instead, you will have sent in $450 a month for only, perhaps (depending on how much extra you can afford) only 14 years and t20 months.
Start doing that early, and you might pay your mortgage off (at a rate of $450 a month) in only 10 or 11 years.
This will not necessarily make the $450 payments you agreed to any smaller, but it WILL mean that your actual intrest payment will be more like $430 that next month... then $405 the next month, and so on, dropping each month (providing you keep up the extra payment)
At the end, you will not have sent in $450 every month for a full 15 years. But, instead, you will have sent in $450 a month for only, perhaps (depending on how much extra you can afford) only 14 years and t20 months.
Start doing that early, and you might pay your mortgage off (at a rate of $450 a month) in only 10 or 11 years.
this is simply sound advice for any loan!
always pay off anything you're paying interest on as quickly as you can afford to. the longer you're making payments, the more net interest you pay.
every car i've ever bought on loan for example i've over-paid monthly statements, trying to end up with as little of my cash in the banks pockets as possible. when i shop, i look for terms i can overpay, and loans that i can pay down the principle on with overpayment.