What if I Pay More Every Month?
When it comes to a home mortgage loan, you can actually pay off the loan much more quickly and save a great deal of money by simply paying a little extra each month.
If you take out a 30 year loan for $250,000.00 with a 5.875% interest rate, for example, your monthly payment (interest and principal only) will be $1,478.84. By the time the 30 year time period is complete, you will have paid $532,376.78 for your home.
If you pay just $50.00 more each month, you will pay only $504,720.42 toward your home. This is a savings of $27,656.37. In addition, you will get the loan paid off 2 Years 4 Months sooner than if you paid only your regular monthly payment.
DISCLAIMER: There is NO WARRANTY, expressed or implied, for the accuracy of this information or it's applicability to your financial situation. Please consult your own financial advisor.