Trent at The Simple Dollar wrote a great post, complete with calculations, on why you should consider rounding up payment to the next dollar, ten dollars, or hundred dollars. The scale of savings on rounding up your credit card or car payments can be huge, but nothing compares to the might mortgage:
Rounding up to the nearest hundred dollars If you decide to round the payment up to the nearest hundred dollar increment, you’ll submit a payment each month for $900 – an overpayment of $94.77. Your payments would end six years and four months earlier and your final payment would be only $2.95. This would result in a total savings over the life of the loan of $34,605.19.
Take a look at the original post to see how it works. To make it work, it helps to automate your finances. If you follow Trent’s plan for a $150,000 mortage and round up about $100 per month, you save more than the cost of a brand new car.
