Real Estate Broker · Bozeman, MT · Member since 2012 · 220 posts · 52 votes
Hi all,
Some time ago (years?) I recall reading an article or blog post about an investor giving their child a wedding gift of pre-paying their first year's mortgage principal. It was an innovative strategy I'd like to share with someone and can't find the article/post.
Anyone out there recall this post and can tell me where to find it on BP? Your help is appreciated.
You don't need the article, just look at an amortization schedule. A couple thousand dollars could take years off the back end of the mortgage. But, at the end of the day your "yield" on your prepayments is exactly the same as the interest rate on the mortgage you are pre paying.