It really depends on far along you are on your present mortgage. If it's only a few years, I'd go for it, but if it's been 10 or so, why not toss some extra in towards the principle every payment as an option? We originally got our mortgage in 1995 and refinanced in 2002 (not sure if that was smart or not but we were saving money and knew we'd be in the house long enough to recover the additional cost of the re-fi onto the mortgage but it also rewind our mortgage to 30 years again). Applied additional money towards the principle every month. Fast forward 9 years - just paid off our 30 year mortgage on 8/6/2011! So that averages out to a 15-year mortgage. We're very happy not to have THAT payment at retirement time.

I did a blog on why never to pay additional $$ toward principal-ever.

Put your $$ instead into an account of your choosing and let it build. Once it matches your principal balance you can pay it off at that time.

In the mean time you can bank on yourself for any reason you wish. No haslle, no interest, no restrictions except those you impose upon yourself.

Here it is if you want to read it.

Stop making extra principal payments

The interest rate on our morgage was 6.125% - in this day and age, I can't even get that at the bank, and, it's very hard to hold on to that in mutual funds and stocks. If our interest rate had been LOWER than our investment percentage gains, then yes, we wouldn't have paid it off. With this debt (yes, it's debt) gone, it has RELIEVED my husband of alot of stress. We are completely debt-free. Unlike alot of those who went off the deep end and refinanced while their home values were high, we just kept plucking away at the principle. We don't buy new cars (although he will buy a new motorcycle for commuting - he just hit 100,000 miles this week). I rarely buy new furniture - I'm into old, used furniture made from that stuff we used to hear about growing up - it was called solid wood. Now everything's solid particleboard. I rarely buy new clothes and he also (except for work). We're thrifty. I was going to buy a wrist thingy this evening at the drugstore b/c my wrist has been hurting (suspecting carpel tunnel problems). I decided to wait until tomorrow b/c the drugstore emailed me a 20% off coupon. I can wait one day to save money!

Do you know what it would feel like to have to make sure we had $1,500 every month JUST for the mortgage payment at retirement? And that's only if r.e.taxes and insurance never goes up. Plus we really didn't have any tax deduction benefit left anymore b/c our principle balance was low (and the tax bracket we're in). Mortgage interest tax deductions are only good for so much money and then it's not a benefit anymore - when the principal balance is really low.

If you haven't read The Millionnaire Next Door, you really should.

Also don't forget to factor in inflation.

If you have 25 years left on your mortgage, you can be certain that payment won't be as hard to make after 25 years of inflation.

My dad bought a new Porsche in 68. It cost him $5600. Ishudder to think what that 911 would have cost him today, perhaps 80k or 90k.

Another thing I am considering very seriously.. Cashing in my IRA to pay off a rental. In 7 years I will have rebuilt my IRA contribution, almost 8 years if you factor in penalties. Each payment after that goes where ever I want it to go.

Even if I didn't believe that debt was evil? Well....it's BOA. To many nightmares with them on all sides of the equation. Loans, shorts, REO.....I could never support them even with a minimal savings account.

Couldn't a local lender do you any better?

Yes BOA is a piece of work... but with them trading below $7 last week. I had the pull the rigger & use some of the LS BPO dollars to buys shares for the riskier side of the porfolio.... If Wareen see's something to invest 5 Billion...just sayin.

You can get a 15 year loan right now for 3.375 with no points and a $1800 rebate towards your closing costs. Check some of the online lenders they have better deals the BofA or the other big banks.

we got 16 new ones today but no landsafe/b of a orders

Send some this way, last 2 weeks deadest ever here in Florida.. All thoe good month in sales so it all works out I guess...

we have sold everyting we`ve listed but a small company in az

It is terrible, no decent amount of orders for weeks! Soon, I'll have to apply at McDonalds and work for food.
I used to receive orders from different companies every day, but it seems everyone dissapeared at all! On the top on this: EML lost Kansas because their client shifted the account to other BPO mill (I don't know who). I feel depressed and tired, even though I'm signed with dozens of companies.

Hang in there Bunny! Or do what you have to do. I used to make a really good living with just a couple mills 5 years ago and havent heard from them in 2 or 3 except once in a while and this year has been slow and I am with just about every single mill known..... I do think something big is going to happen towards the end of the year and 2012 will probably be busy as well... imho

Thanks for cheering me up! It is very easy to get used to carefree life style when money flow is steady and mailbox is full of checks:-)

4 new orders today..
thought I was gonna get the week off.

ITS BAD IN AZ TOO, WE GOT 2 ORDERS TODAY, SOMETHING IS GOING ON WE DONT KNOW ABOUT BUT I HEARD ALOT OF BPO COMPANIES ARE OUTSOURCING THE WORK AND PAYING THEM LIKE 40 TO 80C EACH, THEY HAVE ACCESS TO THE LOCAL MLS FOR FEES NOW