One extra monthly payment a year can reduce interest and mortgage terms.
Is your monthly mortgage payment stressing you out? Whether you’re looking to buy your first home or just looking to build more equity faster, paying off your mortgage early can lead to financial gains long term. Today, I’ll share what happened to one of my first-time homebuyers and how they saved on their monthly payments.
I met with a young couple who are first-time homebuyers and their attorney, who showed them some bank papers for a 30-year mortgage on a $170,000 house. They were going to pay upwards of $240,000 in interest. The reality is that it’s hard to get equity on your home if you’re spending an extra $240,000.
So I took them aside and gave them a computation showing that adding one extra payment a year can reduce the $240,000 bill to having their mortgage paid off in six years. They were surprised and excited to know they had that option.
I give all my homebuyers tips on how to really save money as long as you are disciplined in following the payment plan. I can share the calculator I use for this with you. All you have to do is reach out. Give me a call at 607-351-6933 or vickischamel@kw.com. I’d be happy to help you.
