Most mortgage payers don't realize that a 25 year mortgage doesn't have to be 25 year.
Over the years we've been brainwashed into thinking this is how long we should have this mill stone round our necks. It's never us who gain from this but the lenders. They never let you know of the ways to save thousands of your own cash. It's not in their vocabulary to tell us.
__________
Truth be told, most mortgage a pretty flexible. If we could afford to overpay a bit every month then there's nothing stopping us. In fact it's a great idea to pay a bit extra as the benefits later could be great. When we extra now, it compounds over the years and results in a bundle of cash saved later. An average mortgage of 100,000 at 5% interest with an extra hundred dollars paid every month will save you $20,000 later on.
__________
Yes, $20,000. Not only that it will knock 6 years off your mortgage. You may disagree but 20,000 in my pocket and only a 19 year mortgage is something that appeals to me.
Don't forget though your mortgage is gone after 19 years so you don't have to pay anything for the next 6 years. Imagine not paying the 680 a month for the last 6 years. How appealing is that? A 680 saving every month over 6 years comes to a $48,000 that you can keep. These kind of savings could go toward your retirement.
__________
A mortgage overpayment calculator lets you put all sorts of figures in and at a click of a button will give you an idea of the years you shave off and the cash you can save. The beauty of it is you don't to agree to pay the extra every month. Pay when you can, don't when you can't. Every bit extra that you can pay will be multiplied in savings for you later on. You should now see the potential savings a mortgage overpayment calculator can illustrate. You can get yourself an idea of what you personally can save at my site. Download your FREE copy of the Mortgage Bible at the website Mortgage Watchdog and tinker with the mortgage overpayment calculator and see how much cash you could save.
No comments:
Post a Comment