This is a guest post by The Mortgage Blogger
Over the past few years, I’ve started many blogs, all of which I have chosen to monetize through advertisements, affiliates, etc. Recently, I’ve started a project (a new blog) where I’ll be monetizing my blog and using all proceeds to apply additional payments to my mortgage. My goal with the blog? To cut my loan repayment time in half (see Pay Off Your Mortgage in Half the Time). Why did I set my goal to half the time? Why not 1/3 the time, why not in 5 years? Here’s why:
- Choose timeframe – Cut loan time in half
I currently have a 30 year loan at an interest rate of 6.375%. Of my $1,500/month payment, only about 15% goes to principal – this is the primary reason that I am aiming to pay off my loan in half the time.
- Choose method – Double Principal Payments
To do this, I need to make double principal payments each month. Since payments to principal start out very small at the start of the loan, it will be more feasible to match each principal payment at the start.
- Generate revenue – Make Double Principal Payments
As my blog grows, and hopefully begins making more money, my mortgage payments will require me make larger payments to principal – as the balance gets paid down, a larger percentage of each payment will go to principal and a smaller percentage will go to interest, thus requiring me to make a larger additional payment – hopefully I’ll be able to fund this through my blog income.
Please comment and let us know if any of you have experimented with accelerated mortgage payments. And keep an eye out for links to my new site (I don’t want to release any links to the site until I have some decent content up on the page).
-The Mortgage Blogger