Can I assume that you fellows have 3 - 6 months' income set aside in an emergency fund in case some rather urgent and catastrophic, unexpected expense turns up - or you get no income for an extended period, e.g. go on strike? Trouble is - when the investment's set up to be pretty well immediately available, usually the rate of return is low. Not much fun to get 2% on invested emergency money - but be paying 5 - 7% on mortgage. I often don't have emergency funds on hand, but have invested assets more than adequate to use as collateral for a loan in case of emergency - at lower rate of interest, as the loan is fully secured by easily-liquidatable assets, unlike the hassle of repossessing, towing, storing and selling a car used as collateral for a loan to buy it. Canadians not allowed to use registered retirement accounts as collateral for loans - but if one carries a substantial amount in such a fund with that institution, usually they'll set up a loan that's officially unsecured, but at a lower rate than that usually charged on an unsecured loan. When I make such a loan, though, the interest is not deductible. Possible problem - if one gets laid off and goes to make such a loan to tide one over, when the bank asks who is one's employer and hears that there isn't one at present - the loan is more than likely refused. But - a number of my investments are carried by the stockbroker. If I have regular, quality assets of, say, $10,000., the broker will lend me up to $5,000. without question. S/he doesn't care whether I'm employed or not. Careful, though - if my $10,000. asset declines in value to $8,000. and I had borrowed the full eligible amount of $5,000., the broker will call me to ask me for a deposit of at least $1,000. to reduce my loan to $4,000.: by tomorrow, at the latest. More than likely s/he'll ask for $1,500. or so, to add a little cushion in case of further reduction in value. If I can't come up with the required amount, then they must sell some of my asset - which results in a reduction in the amount of the asset underlying the loan. Not a good course: I don't want margin calls for either my clients or myself. Here in Canada, mortgage interest on owner-occupied home is not deductible - but when home is sold for a gain, total amount of gain is tax-free. Interest on money borrowed for non-registered investment is deductible, but on money invested in registered retirement account isn't - as the amount invested is deductible, within limits. Many advisors suggest borrow to invest in retirement account, early in year before deadline, then when tax refund relative to the deduction for the retirement account investment arrives, use it to pay down loan, try to have loan paid off before year end. Good wishes as you attempt to make your money work most effectively for you and yours, ole joyful

What it does for you is builds equity more quickly, and reduces the amount of interest you pay overall. I know some companies and even financial instutions try to charge an extra fee for processing the extra checks. Be VERY careful that they don't try to hit you with penalties for "late payments" if you do this. If you start this they may also simply charge you the set up fee, or at least try to.

It's simpler than you think. Just use a regular mortgage calculator, plug in the amount remaining on your morrgage, today's date, and your interest rate. For the term of the mortgage, just use the number of months remaining until the day you would like to have it paid off. Then calculate the payment, subtrate from that your current payment, and the result will be the extra amount you need to add to each payment.

I work part time for a very successful couple that pays anything that they can, business or personal, with their airline rewards credit cards. For their business it does include most vendors that they deal with. Why do so many of these businesses take cards and pay the percentage? Becuase bad checks and bad debt in general can easily take a big chunk of the profit. They pay off their credit cards every month and never pay interest. They travel ALOT plan well ahead of time. Not only are they getting the miles, but with the float time they get waiting for each credit card payment they let large amounts of money sit in their money market account. I know most of us won't get they amount of benefits these folks get, but if you can get some benefit, why not? I'm looking into rewards cards that I can get directly through my bank and pay on-line from my checking at least once a week. We have no credit card debt now, and won't ever let that build up again, but if I can work it into some benefit for me I will try.