Did you know?

You’ve paid off all your debt and now it’s down to the home! First, congratulations! I’d be celebrating big time.

Did you know you can pay off your mortgage in as little as 7 years? I’ve provided a few examples for you to chew on.

First, I’m assuming your loan is $100,000 with interest rate of 8% and term of 30 years. If you pay an extra $50 bucks a month you’ll reduce your time by 73 months.

Here’s an interesting little known fact. Let’s say your mortgage is $100,000 interest rate of 9% and 30 year term. The first month’s mortgage payment equals $54.62 toward the principal while the remaining $750 goes toward interest.

The second monthly principal payment works out to $54.62 plus .41cents leaving $749.59 toward interest. If you were to pay an extra $54.62 toward the principal you would save $94,647.20 in interest over the life of the loan and reduce your 30 year term to 15 years. The key is to add an extra principal payment each month. It’s the greatest investment you could possibly make!

If you can’t do any of the above try an annual bonus or tax return. For example, if you use a $500 dollar bonus each year to reduce principal on your home you’d save $26,937.73 in interest and reduce the number of monthly payments by 5 years and 8 months.

Normally I don’t get into lots and lots of numbers but I think you get the point. If nothing else treat your mortgage the way you treated your debt with a relentless pursuit of paying it off. It will pay off big time! It’s the best investment you could possibly make. Now you know.

David…