Add A Few Dollars To Your Mortgage Payment

Feb 24
10:07

2005

Terry J. Rigg

Terry J. Rigg

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Many of us don't believe that a few dollars can make a big difference. In a lot of cases that is true. But when it comes to mortgages or any other type of loan, a few extra dollars can save you Big Bucks.

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The chart below gives examples of three different loan terms and what paying between $75 to $100 more a month would do to the mortgage. It is based on a $100,000.00 loan at 7% interest.

Years Int Rate Payment Interest Total of Payments Savings

307% $665.30 $139,508.00 $239,508.00 N/A
Round Payment to $750.00 $93,994.86 $193,994.86 $45,513.14 This loan would be paid off in 259 months instead of 360.

207% $775.30 $86,072.00 $186,072.00 N/A
Round Payment to $850.00 $69,409.58$169,409.58 $16,662.42 This loan would be paid off in 199 months instead of 240.

157% $898.93 $61,789.40 $161,789.40 N/A
Round Payment to $1000.00 $50,517.67 $150,517.65 $11,271.73 This loan would be paid off in 151 months instead of 180.

By adding $84.70 to your 30 year loan you can save $45,513.14 and pay the loan off in 21 1/2 years.

By adding $74.70 to your 20 year loan you can save $16,662.42 and pay the loan off in 16 1/2 years.

By adding $101.07 to your 15 year loan you can save $11,271.73 and pay the loan off in 12 1/2 years.

You can also see by the chart that obtaining a shorter loan termwhen you buy your house can save a lot of money.

There are a couple of things that you need to check. First is that your loan agreement doesn't allow the loan company to charge penalties for early payment. Secondly,Add A Few Dollars To Your Mortgage Payment Articles if you itemize your federal income taxes and deduct mortgage interest, paying less interest will mean a lower deduction. I believe it is safe to say that the interest savings will far outweigh the tax savings.

Even if you don't have $75 to $100 a month to add to your mortgage payment, even $25 would save a lot.

If you would like to have your own Loan Calculator, just visitwww.pine-grove.com to download their Loan*Calculator! Plus. This is a free version and has everything the average family can use. It is also the Loan Calculator I have used for several months. Highly Recommended.

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