You’ve probably heard that putting extra money toward your principal can cut years off your mortgage. Even small amounts add up over time and can make a sizeable difference. For example, below are the results of paying extra on a $200,000 mortgage at 4.5% with a 30 year term:
Extra Monthly Principal Years Saved Interest Savings
$50 2.75 $17,700
$100 5.00 $31,745
$150 6.92 $43,204
$200 8.50 $52,755
This may not necessarily be the best use of extra cash for homeowners who
aren’t planning to stay in their home for a long period of time. If you’re
planning to stay in your home you may want to plan for how soon you could
be mortgage-free. Do you want to know how many years your extra cash may
shave off your mortgage? Just give me a call and I’ll help you figure out a plan that will work for you.
Dave Duke, Mortgage Consultant (Click on picture to go to my business page.)
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