PAY YOUR HOME OFF QUICKLY

Home buyers can save a bundle by paying several months of principle while the monthly principle payment is low. During the first few years of a typical home mortgage the interest payments are huge and the principle payments are very small.

EXAMPLE MORTGAGE = $150,000
30 YEARS @ 6 ½ % INTEREST
YOU WILL PAY A TOTAL OF 360 PAYMENTS = $341,311.10
YOU WILL PAY THE BANK TOTAL INTEREST = $191,311.10

12 MONTH LOAN SCHEDULE
PAYMENT # PAYMENT AMOUNT INTEREST PRINCIPAL BALANCES
1 $948.11 812.50 135.61 149,864.39
2 $948.11 811.77 136.34
3 $948.11 811.03 137.08
4 $948.11 810.28 137.83
5 $948.11 809.54 138.57
6 $948.11 808.79 139.32
7 $948.11 808.03 140.08
8 $948.11 807.27 140.84
9 $948.11 806.51 141.60
10 $948.11 805.74 142.37
11 $948.11 804.96 143.15
12 $948.11 804.17 143.94 148,323.27
IF YOU MAKE 12 PRINCIPLE PAYMENTS TOTALING $1,675.73 YOU WILL BE TAKING OFF 12 PAYMENTS OF $948.11 TOTALING $9,700.59 OFF THE LOAN AND REDUCE THE LOAN TO 29 YEARS. IN ONE YEAR FOR YOUR $1675.73 PAYMENT YOU WILL SAVE YOURSELF $8,024.86!!
If you do this by making a couple of extra payments each year you can cut your mortgage life in half and save tens of thousands of dollars!! This is better than putting extra money in a savings account. Put it on your mortgage.