Why should you pay extra money towards your mortgage each month?
Many people just pay the required mortgage payment amount each month without realizing how adding a little extra money goes a long way. Let’s look at a general example so you can see the many benefits of paying additional money towards your home loan. Let’s say your mortgage loan is $350,000, a 5% interest rate with a 30 year term. This principle and interest payment would be $1879 a month. Now, if you happen to have an extra $500 a month that you can put towards your monthly payment this small sacrifice would knock off almost 11 years! You would have your home loan paid off in just 19 years and you would save over $133,000 thousand dollars in interest! Now let’s say you can afford an extra $1000 a month, what would that do? That sacrifice would save you almost $190,000 dollars in interest, and you would pay your home loan about 16 years early! Any extra amount you can pay towards the principle loan amount will greatly benefit you. You will save thousands of dollars, build up the equity in your home, and with a little effort you can own your home free and clear! If you are ready to buy, sell, or invest, give us a call. Pinyon Properties is your real estate one stop shop!
