Not a lot of people in this economy have an extra hundred plus dollars to
spend a month. However, if you can spare a hundred dollars or more a month
and add to the principle payment of your home loan you will notice a huge
savings in attempt to pay off your loan sooner than the original 30 years
owed. I have added a photo below to show you how much the additional money
paid can make a difference. The savings are eye opening. Quite frankly after
seeing the numbers and savings I jumped on the band wagon of paying down my
mortgage sooner just by paying an additional $200 a month. The below
information is based off a continual payment of the additional funds
monthly. The more you pay down the principle monthly, the quicker you pay
off the mortgage and the less interest you pay- saving you more money in the
end. Paying additional money monthly is not a requirement but if you plan to
stay in your home for the life of the loan it is definitely something to
consider. Stats show the average home owner lives in their home for 7-10 year,
sells and then purchases another home, so it might not be for
everyone. Even if you sell your home before the 30 year loan is up, it's
spend a month. However, if you can spare a hundred dollars or more a month
and add to the principle payment of your home loan you will notice a huge
savings in attempt to pay off your loan sooner than the original 30 years
owed. I have added a photo below to show you how much the additional money
paid can make a difference. The savings are eye opening. Quite frankly after
seeing the numbers and savings I jumped on the band wagon of paying down my
mortgage sooner just by paying an additional $200 a month. The below
information is based off a continual payment of the additional funds
monthly. The more you pay down the principle monthly, the quicker you pay
off the mortgage and the less interest you pay- saving you more money in the
end. Paying additional money monthly is not a requirement but if you plan to
stay in your home for the life of the loan it is definitely something to
consider. Stats show the average home owner lives in their home for 7-10 year,
sells and then purchases another home, so it might not be for
everyone. Even if you sell your home before the 30 year loan is up, it's
that much more you potentially get back. (You would get this money back if
the house ends up selling for more than you owe on the home loan) The
amounts below could be different depending on your loan amount, interest
amounts below could be different depending on your loan amount, interest
rate, and additional monthly payment made.
Below is an example of a payment schedule to show you the breakdown of a
monthly house payment and the difference in principle and interest. By
adding more principle monthly you reduce the interest paid slightly.
The most shocking number on this chart is the $111,247.28 paid in interest
over 30 years. After 30 years you have paid way more than you purchased
the home for- this is another reason to pay your loan off sooner by adding
additional payments monthly or add a large sum of money yearly to a single
payment. There is no way to avoid paying interest on a loan unless you pay
cash. Below is a link for you to put in your loan specifics and find your savings TODAY!
the home for- this is another reason to pay your loan off sooner by adding
additional payments monthly or add a large sum of money yearly to a single
payment. There is no way to avoid paying interest on a loan unless you pay
cash. Below is a link for you to put in your loan specifics and find your savings TODAY!
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