I have to share something crazy with you all that is especially useful if you have recently purchased a home.
Did you know that making even 1 extra mortgage payment a year can significantly impact how much compound interest you pay over the lifetime of your mortgage?
There are extra payment mortgage calculators available online to help you.
A common misconception is that in order to make a difference, I need to pay a significant amount each month.
The truth is that even $20 extra a month can make a big difference.
One aggressive example is on a $320,000 mortgage financed for 30 years.
By making an extra $500 per month payment the loan would be paid off in 17 years and 9 months (12 years and 3 months early!).
And it saves over $210,000 in interest!
Obviously, terms and conditions vary so you will want to plug in your information to get the most accurate calculations for your situation.
Is the idea of making an extra $500 too much for you?
Then start with $20 or $50 for now and watch your efforts grow.
#financialfriday #budget #mortgage
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