I know it’s not exactly easy to do...but if you make 13 payments a year instead of 12 you can cut your 30 year loan down to a roughly 25-26 year loan and save potentially tens of thousands of dollars in interest.
Example: if you have a 250,000$ / 30 year loan and you pay 4% interest, you will pay roughly 180,000 in interest over the course of the loan (crazy huh?). By making an additional payment per year you can shave off nearly $30,000+ in interest over the course of the loan.
You can also switch to bi-monthly payments which cost you the same as a single monthly payment but are split up into 2 payments each month. This “quicker pay” system also shaves off significant interest over the course of your loan.
Google search for “extra mortgage payment calculator” to plug in your own scenario. You’ll be surprised...
Submitted October 14, 2018 at 11:15PM by Baseba11er https://ift.tt/2CIz7MN
