What Can an Extra $100 a Month Do to Your Mortgage?

A small change to your mortgage payment can make a surprisingly large difference over time.

In this Mortgage Freedom video, I look at a simple example: increasing a $2,000 monthly mortgage payment by just $100.

That additional $100 per month can shorten the time it takes to become mortgage-free and reduce the total interest paid over the life of the mortgage.

The bigger lesson is that Mortgage Freedom doesn't necessarily require dramatic changes. A series of small, intentional decisions can move your mortgage-free date forward.

Why $100 a Month Matters

When most homeowners think about becoming mortgage-free sooner, they often assume it requires a major financial sacrifice.

It doesn't always.

Even a relatively small increase in your regular mortgage payment can reduce principal faster, shorten your amortization and reduce the amount of interest you pay over time.

For example, moving a mortgage payment from $2,000 to $2,100 per month may seem like a modest adjustment to the household budget, but that extra $100 is being applied consistently month after month.

Over years, those additional principal payments add up.

Mortgage Freedom Is About Having a Plan

The goal isn't simply to make the biggest mortgage payment possible.

A Mortgage Freedom strategy looks at your mortgage structure, available cash flow, other debts, prepayment privileges and your broader financial position.

The important question becomes:

What small changes can we make today that move your mortgage-free date forward?

If you'd like to know what an additional $50, $100, $200 or more per month could do to your own mortgage, I can help you run those numbers.

Dan Page
Mortgage Broker | Nova Scotia
Mortgage Freedom