Save Thousands Of Dollars On Your Mortgage With This Tip
Over 30 years you pay a lot of money in interest when you buy a home. The bank is lending you a huge amount of money so you can afford to pay monthly payments. But there is a way that you can trim off some of that interest with a little extra payment each month.
For example – if you had a mortgage for $150,000 and you have already been paying on it for 2 years, you could pay just an extra $50 per month and over the life of your loan you will save $12,229 in interest ($96,008 vs. $83,779), and own the home 3.2 years sooner than under your current schedule (28 years vs. 24.8 years).
Just an extra $600 per year could save you over $12,000 of interest! This is an easy way to save and own your home a lot faster. If you paid an extra $100 per month you could save $21,577 in interest over the life of your loan.
Check out this handy mortgage calculator to help you figure out how much money you could save if you paid a little extra on your mortgage.
*Interest savings was based on a 30 year loan at 4%.