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"How to Save Money on Your Mortgage"
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Article: "How to
Save Money on Your Mortgage"
By Andre Plessis
Once you have bought your home and established a great credit you will save
TENS OF THOUSANDS OF DOLLARS and
in some cases even HUNDREDS OF THOUSANDS OF DOLLARS in interest payments
over the life of your loan. Your next step is to pay extra money towards your
principal every month. What will be the benefit? It will reduce the
life of your mortgage by many years. Imagine being able to pay your loan in 20
years instead of 30 years. Wouldn't that be great?
On the first table bellow we assume the loan amount is $200,000, the interest rate is 6.5% and extra payment is $100. You will SAVE $55,561.53 and pay off your mortgage in 24 years 5 months.
| You can save money and save years off the length of your loan by paying more on your monthly mortgage payment than your regularly scheduled amount. How much can you save? Fill in the boxes below, including the amount of the additional payment and the number of times you will make that increased payment each year. | ||||||||||||||||
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Things gets even better now. On the second example we assume the loan amount is $200,000, the interest rate is 6.5% and extra payment is $200. You will SAVE $89,509.06 and pay off your mortgage in 20 years 10 months. That is very powerful.
| You can save money and save years off the length of your loan by paying more on your monthly mortgage payment than your regularly scheduled amount. How much can you save? Fill in the boxes below, including the amount of the additional payment and the number of times you will make that increased payment each year. | ||||||||||||||||
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Last example we assume the loan amount is $300,000, the interest rate is 7% and extra payment is $150. You will SAVE $94,302.67 and pay off your mortgage in 24 years 3 months. That is absolutely magical.
| You can save money and save years off the length of your loan by paying more on your monthly mortgage payment than your regularly scheduled amount. How much can you save? Fill in the boxes below, including the amount of the additional payment and the number of times you will make that increased payment each year. | ||||||||||||||||
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As you can see there is a lot of money to save when adding extra payment every month. If you go back to step 1 (Importance of having good credit) and take the example of someone having an interest rate of 7% on a $300,000 loan he will also save $73,939 over someone who has 8% interest rate. If that same person pays an extra $150 he will save another $94,302.67 over the person who does not add $150 per month.
In the last example the person who has better credit and qualify for a better interest rate (7%) and add $150 on its mortgage payment every month will save ($73,939 + $94,302.67) $168,241.67 over the life of his loan.
Those numbers have not been made up. I could have compared someone who has 6% interest rate on a $300,00 loan and add $150 per month to someone who has 8% interest rate and who does not make any additional payment. The savings would have been STAGGERING.
This is the reality and anybody can do it. All you have to do is maintain a good credit and make extra payment towards principal. If you do that you will EASILY save TENS OF THOUSANDS OR HUNDREDS OF THOUSANDS OF DOLLARS. That money will be in your pocket and not in the lender's pocket. THE CHOICE IS YOURS!
It is now time to go to step #3 to learn how to easily become wealthy in real estate.
| Importance of Having Good Credit | How to Save Money on Your Mortgage | How to Use Your Equity to Your Advantage |
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Andre Plessis
Andre Plessis
"The Mortgage Guru"
"A Mortgage Professional
whose primary goal is to provide the expertise, guidance and skills necessary to
obtain the best mortgage to meet your personal needs".
View Client Testimonials
P.S. If you are at all intimidated or unsure about the mortgage process if you don’t understand how to evaluate your options in getting a mortgage loan our 15 key questions will help you feel comfortable that you are making the best decisions. Also if you are in the process of refinancing your home with anyone, CALL ME and I will let you know if you are being offered the best loan option based on market conditions and your financial situation.
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