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What Your Coffee Habit Can Teach You About Paying Off Your Mortgage Faster

May 20, 2025 by Kay Monigold

As your mortgage advisor, I am not here to tell you to give up your favorite coffee, but I am here to show you how something as simple as your daily coffee run can reveal some powerful lessons about how to pay off your mortgage faster.

The Cost of Coffee and the Opportunity It Hides
Let’s say you spend $5 a day on coffee, five days a week. That is $25 a week, about $100 a month, and $1,200 a year. Over 10 years? That adds up to $12,000.

Now imagine if you took just a portion of that and applied it toward your mortgage principal instead. That small, daily choice could save you thousands in interest and shave years off your loan.

Small Choices, Big Results
You do not need to make big changes to see an impact. Something as simple as adding $100 a month to your mortgage can make a big difference. For example, on a $300,000 loan at 6%, adding $100 extra to your principal each month could save you over $38,000 in interest and help you pay off your mortgage more than five years earlier. That is your coffee habit at work, just redirected with purpose.

Create a “Mortgage Mindset”
Think about all the little expenses that sneak into your monthly budget like food delivery, unused subscriptions, extra shopping trips. These small amounts can become powerful tools when applied consistently to your mortgage.

Try automating extra payments or rounding up your monthly payment. Use your tax refund, work bonuses, or even income from a side hustle to chip away at your loan. These little decisions really do add up.

It’s Not About Deprivation, It’s About Direction
This is not about cutting all the fun out of your life. It is about being more intentional. Maybe you still enjoy your morning coffee, but cut back in another area. It is all about choosing what matters most in the long run.

Let’s Build Your Plan
As your loan originator, I’m here to help you explore strategies to pay down your mortgage faster, without feeling like you are giving everything up. Together, we can create a plan that fits your budget and brings you closer to financial freedom.

Have questions? Let’s talk. Sometimes it just takes a new perspective and a little coffee math to get you on the right path.

Filed Under: Mortgage Tips Tagged With: Coffee And Homeownership, Financial Freedom, Mortgage Tips

Why Your Mortgage Has an Escrow Account and How It Works for You

May 15, 2025 by Kay Monigold

When you close on a home loan, you’ll likely hear the term “escrow account” mentioned—and if you’re like most buyers, you may not be entirely sure what it means. While it might sound complicated, an escrow account is a helpful tool that simplifies homeownership and protects your investment.

What is an Escrow Account?
An escrow account is a separate account set up by your mortgage servicer to hold funds for specific home-related expenses, most commonly property taxes and homeowners’ insurance. Rather than paying those large bills all at once, you make monthly contributions as part of your mortgage payment. When the bills come due, your mortgage servicer pays them on your behalf from the escrow account.

Why Do Lenders Require Escrow Accounts?
Lenders want to ensure your property taxes and insurance premiums are paid on time. If those payments aren’t made, your home could be at risk, either from legal claims (like a tax lien) or from damage without insurance coverage. Since your home is the collateral for the mortgage, it’s in the lender’s best interest to protect it.

That’s why many mortgage lenders require escrow accounts, especially for borrowers who make smaller down payments or use government-backed loans. In some cases, if you put down at least 20%, you may be able to opt out—but it depends on your lender’s guidelines.

How Escrow Accounts Affect Your Monthly Payment
Your monthly mortgage payment includes more than just principal and interest—it often includes escrow payments, too. Each year, your lender estimates how much you’ll owe in taxes and insurance, divides that total by 12, and adds that amount to your monthly bill.

Because these costs can change from year to year, your lender will conduct an annual escrow analysis. If taxes or insurance premiums go up, your escrow payment may increase. If they go down, you might receive a refund or a lower payment.

What Happens If There’s a Shortage?
If there isn’t enough money in your escrow account to cover your bills, say, if your property taxes increased unexpectedly, your lender will notify you of a shortage. You’ll typically have the option to pay the difference in a lump sum or spread it out over the coming year.

Escrow Accounts Offer Peace of Mind
Instead of having to remember due dates and save for large annual expenses, your escrow account helps you stay on track. It’s a built-in budgeting tool that simplifies the financial side of homeownership—and ensures your biggest investment stays protected.

Filed Under: Mortgage Tips Tagged With: Escrow Account, Homeownership, Mortgage Tips

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Our Team

Kay MonigoldKay Monigold
Owner/Mortgage Broker/Residential Mortgage Loan Originator
NMLS#1086176

Ron MartinRon Martin
Residential Mortgage Loan Originator

NMLS#316821

Steven LoweSteven P Lowe, Sr
Residential Mortgage Loan Originator
NMLS #1085638

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