Thirty years sounds like an eternity when you close on a home and see what year your home will finally be paid off. Do you have a plan to retire early and be mortgage-free?
Want to get it paid for quickly? Even if you don't plan to stay in your home for 30 years, you can pay down the principal balance quickly.
One of my preferred lenders has done a few charts showing what kind of savings you would see over the life of the loan by paying just one payment extra per year.
This example will be for a $560,000 loan balance at current rates.
This information would be for a mortgage making NO extra payments.
This information would be for a mortgage making one extra payment per year.
This would be what you would save over the 30 years -
Remember, it MUST be made payable to the principal balance, not as a payment, as you are paying interest and escrow amounts.
Thank you Kim Crea for putting these charts together for me. If you need mortgage information, please give her a call/text or email.