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Early Payoff Hack: Dollar-a-month & Surprise Money


Mortgage Hack #2


  1. Dollar-a-month

If your income rises gradually but steadily over time, the dollar-a-month plan should be financially realistic.


How it works: Increase your contribution by $1 each month. Just make the first payment of $900, the second payment of $901, and so forth. You could cut the length of your mortgage by eight years if you had a $150,000 loan and a 30-year, $900 per month mortgage with a 6% fixed interest rate.


  1. Surprise money

How it works: Use unanticipated funds to aid in loan repayment. This is the simplest way to pay off debt faster, including a mortgage. This money is probably budgeted for on a monthly or annual basis, making it simpler to use in this situation.


Examples of surprise money: work bonus, tax refunds, birthday present, etc.


Beware of prepayment penalties. Consult with your lender.



Reference: 2022 Keller Mortgage LLC and www.nationwide.com


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