Making Extra Payments on Your Mortgage Revisited
A response to some of the criticisms
On February 28, 2024, I published an article titled Never Make Extra Payments on Your Mortgage. In that article, I recommended that you refrain from making extra payments on your mortgage. Instead, I recommended that you accumulate savings and then ask if your bank offers a recast, also known as a re-amortization of the mortgage. A re-amortization requires a sizeable payment on the existing mortgage, after which the bank or mortgage company recalculates the balance using the remaining length of the mortgage. The impact is a significantly lower monthly mortgage payment, thus increasing your spendable dollars and significant interest savings.
That article received quite a bit of response. Several of the replies were critical of some of my points. After some thought, I was able to see their point of view and felt a need to write a new article addressing them.
Who Do I Write For?
It is important to know who I am writing for to better understand the points I presented about making extra payments. To understand who I write for, you have to understand some facts about people ages 65 and older, which is the primary audience I write for.
