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Connecticut Mortgage: How Much Can I Save By Paying Down My Mortgage?

Posted on November 2, 2017 · Posted in Connecticut Mortgage Company, Connecticut Mortgage Refinance

There are so many ways to save money when talking about mortgages. Most people only know about the obvious methods such as obtaining a lower interest rate, knocking off mortgage insurance, or even just shortening your loan term. What some of you may or may not know is how one single extra payment a year can impact you mortgage significantly and the best way to explain this is by showing you  – so below, I have provided two examples to help map out your savings:

 

–A $200,000 30-year home loan with an interest rate of 5% would cost $186,512 in interest with the traditional 12 payments a year. Make the equivalent of 13 monthly payments every year (1 extra payment a year), and the loan will be retired in 26years and you will pay only $153,813 in interest a savings of $32,699.

 

–$150,000 mortgage with a 4% interest rate. Following a standard 30-year payment schedule (if your loan started today), you can expect to pay off your mortgage by January 2047. But if you were to contribute one additional $716 payment each year, you could expect to pay off your mortgage in January 2043. That shaves a full four years off the total repayment time!

 

This is just one of many ways to save money with your mortgage if you are looking to purchase a home or refinance your mortgage for some savings – I am here for all your residential and commercial needs!

 

Thanks,

 

aburke

Andrew Burke
aburke@northeast-mortgage.com
Cell: 203-209-0324
NMLS: 1271085/ Company NMLS: 117273
210 South Main St. Middletown, CT 06457