Adapt MoneyClub.com’s Dollar-a-Month Plan. ” If you have a 30-year fixed rate mortgage for $150,000 at 6% today, just add an extra dollar to your $900 payment each month — $1 the first month, $2 the second month, $3 the third, and so on.”
You’ll end up paying off your 30-year loan in 22 years (just be sure your loan has no prepayment penalty).
Savings: Over 30 years, interest would probably total about $174,000; using the Dollar-A-Month plan, you’d pay approximately $122,000, an impressive savings of $52,000! Now that’s something to be happy about!