How to Reduce Your Mortgage
One Additional Mortgage Payment a Year
There's a simple trick to significantly reduce the length of your mortgage and save you thousands of dollars. The trick is to make one extra mortgage payment a year and apply that payment toward your loan's principal.
This is the method being used by "Bi-Weekly Mortgage Reduction Services" and "Bi-Weekly Mortgage Savings Programs". Only, when you do it yourself, you don't pay a third party unnecessary set-up costs and fees!
Example: $100,000 loan, 30-year mortgage, 6.5% fixed interest rate
It may not be possible for you to increase your monthly mortgage payment. Keep in mind that most mortgages will permit you to make additional payments to your principal at anytime. Perhaps, five-years after moving into your home you receive a larger than expected tax return, or an inheritance or a non-taxable cash gift. You could apply this money toward your loan's principal, resulting in significant savings and a shorter loan period.
With a $100,000, 30-year, 6.5% fixed interest rate mortgage loan, the borrower will pay a total of $227,542.98 to pay back the loan in 30 years. That equals $127,542.98 in interest payments.
If the same borrower makes a one-time $5,000 payment the first day of year 6, he/she will pay a total of $204,710.75 and pay off the loan in 27 years (324 months). That's a savings of $22,832.23 in interest.
- Home ▶
- For Buyers ▶
- Why an inspection? ▶
- Selling Your Home ▶
- News ▶
- Closing costs - loans ▶
- Bi-Weekly Mortgage
- Links and Resources ▶
- Lease Analysis
- Mortgage Saving Tips
- Role of the MLS
- Foreclosure Listings
- Adobe Support
- Search For Homes
- Download Adobe Acrobat
We look forward to giving you the professional personalized service you deserve.
Shamrock Real Estate 1608 Anaconda Dr. Anaconda, MT 59711
Phone: Cell: Fax: E-mail: slCbum5eY8wdHNanc7QyBIQc0qNLDr+y+0Ox624UuDs=
Why an inspection? | Contact Us | Curb Appeal List | Closing costs - loans | Closing costs - Ins. | Your FICO score | How Escrow Works | Our Agents | Anaconda School System | Butte Schools | Old Works Golf Course | My Montana | Fairmont Hot Springs | Anaconda Chamber of Commerce | Links and Resources | Adobe Support | Closing Costs | First Time Buyers | Home Buyer Checklist | For Buyers | News | Real Estate Glossary | Selling Your Home | Search REALTOR.com® | Home | Applying for a Loan | Bi-Weekly Mortgage | Writing the Offer | Staging Your House | 9 Steps to Owning | 9 Steps to Ownership | Winterize your Home | Be Accessible! | Buying Foreclosures/REO's | Contingencies in Contracts | The Back Yard | Should you paint? | The Kitchen | Selling One, Buying Another