Are you paying the minimum on your mortgage? Did you know that by paying just $20 a month more, you could potentially save yourself tens of thousands of dollars over the life of your mortgage?
Here’s some examples of how that works and how much you can save.
We’ll also show you how much you could save by paying an additional $50 and $100 more per month towards your mortgage.
Let’s say you have a $200k mortgage at a 7% interest rate (the current rate on the day this was written).
Not counting taxes, fees, or anything other than your principal and interest mortgage payment, your monthly payment would be $1,331 per month.
If you added just $20 to this total, or paid $1,351 per month, you would save yourself $7,403.20 in interest paid over the 30 years of your loan.
Here’s how much you’d save paying an additional $20 a month towards your mortgage
$300k = $11,104 savings on interest over a 30 year mortgage.
$400k = $14,806 savings
$500k = $18,508 savings
$600k = $22,611 savings
$750k = $27,762 savings
$1 million = $37,016 savings
How much you’d save paying an additional $50 a month towards your mortgage
$200k mortgage = $22,097 savings
$300k = $33,146 savings
$400k = $44,195 savings
$500k = $55,244 savings
$600k = $66,292 savings
$750k = $82,865 savings
$1 million = $110,487 savings
Savings paying an additional $100 a month
$200k mortgage = $44,194 savings
$300k = $66,291 savings
$400k = $88,388 savings
$500k = $110,486 savings
$600k = $132,583 savings
$750k = $166, 479 savings
$1 million = $221,972 savings
In conclusion, by paying whatever you can extra in addition to your minimum monthly mortgage payment, you will save a small fortune in interest paid over the life of your loan. Why wouldn’t you do this?
Your bank will hate you, but your bank account will love you.
