Question

5. What are the pros and cons of adding $100 a month to your fixed-rate mortgage payment?

Answer 1

Payment of $100 a month to fixed mortgage payment is early mortgage payment scheme and it will be helping the borrower in order to pay off their mortgage quickly because when he will be trying to take additional load on the monthly front then he will be bearing with the mortgage expense quickly and he will pay off his loan quickly.

Advantage related to payment is that Mortgage will be paid off quickly and it will be providing with the required flexibility and reduced risk.

Cons related to payment is that it will be leading to loss of the opportunity and loss of the money as well because when we will be considering the time value of the money then the early payment will mean that it later fixed payment would have cost lesser but the the payment in early will mean that borrower will have higher cost.