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Why You Should Put A Extra $100.00 A Month On Your Mortgage Payments

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Why You Should Put A Extra $100.00 A Month On Your Mortgage Payments

So you have been either paying off debt, saving money by couponing or on electricity bills or even got a extra raise at work. You have a extra $100.00 a month and don't know what to do with it,  think you might want to go out and by something for yourself each month or eat out more every month. Stop! Don't even think those things that extra $100.00 a month can you thousands of dollars. If you own a mortgage I can tell you right now you are going to want to take that extra $100.00 a month and put it on your mortgage. Why you might ask?

Well when it comes to a home mortgage loan, you can actually pay off your moan much more quickly and save a great deal of money by simply paying a little extra each month.

So lets say you have a 30 year loan for $250,000.00 with a 5.00% interest rate. For a example your monthly payment (interest and principal only) will be $1,342.05 a month. By the time the 30 year time period is complete you will have paid $483,133.89 for you home because of interest. That is almost double your actual mortgage loan amount.

If you would just pay $100.00 more each month you pay only $444,403.17 towards your home. This is a savings of $38,730.72. In addition to this great savings you will also get the loan paid off 4 years and 3 months sooner saving you that $1,342.05 a month.

So have a extra $100.00 a month and own a mortgage? Think twice about spending it on random junk you do not need, or eating out when you can just eat at home. You will save so much more money in the long run, so when you are debt free you are able to do these great things.

 

 

Comments (1)

 

  1. Wanda Tracey says:

    Fortunately our bank manager also told us this and because we listened we have save a ton of money that came off the mortgage .This is great information .

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