Save 10's of $1,000 on your Home
As a real estate broker I have learned so many things and one of the biggest is "How To save 10's of $1,000 on my home or homes". Its really very simple and times it's very hard, however a little now will save you 10's of $1,000.
So let me share this with you:You purchase a home for $300,000 with a 30 year fixed rate
loan at 5% interest rate, in 30 years your loan and interest total payment will be $579,767 (does not include PITI). Yes its not cheap to purchase a home however you do get some yearly deductions, please talk with your CPA.
Lets save money!! Everyone likes to do that!!
- If you apply $100 per month to the principal of your loan you will do 2 things
- Turn your 30 year loan into a 26 year and 4 month loan (yes payoff 3 years and 8 months sooner)
- Save $39,937 in interest payments (as long as you do not have an early payoff clause in your loan).
- At the end of each year with the Tax money you get back from the deductions of owning a home you apply $2,000 to the principal of your loan you have two things that happen.
- Turn your 30 year loan into a 24 year and 3 month loan
- Save $62,527 in interest payments (as long as you do not have an early payoff clause in your loan).
- THE KICKER, if you both of the above $100 per month to your principal and $2,000 to your principal each year.
- Turn your 30 year loan into a 21 year and 11 month loan.
- You will Save $86,659 in interest payments (as long as you do not have an early payoff clause in your loan)
Now I know some people will say "That's money I never had"
and I get it that is TRUE! However, its money you do not pay the bank either and you would pay it of you pay
your mortgage for 30 years....... As you see a little bit each month and each year goes a VERY LONG WAY!!!!