Mortgage saving strategies and tips – BH&G Real Estate Masiello Group

How to Reduce Your Mortgage

One Additional Mortgage Payment a Year

There's a simple trick to significantly reduce the length of your mortgage and save you thousands of dollars. The trick is to make one extra mortgage payment a year and apply that payment toward your loan's principal.

This is the method being used by "Bi-Weekly Mortgage Reduction Services" and "Bi-Weekly Mortgage Savings Programs". Only, when you do it yourself, you don't pay a third party unnecessary set-up costs and fees!

Example: $100,000 loan, 30-year mortgage, 6.5% fixed interest rate

Extra Mortgage Payments/ Year	Principal & Interest	Additional Monthly Payment	SAVINGS	Total Paid	# of Years
0	$632.07	0	0	$227,542.98	29.92 / 359 mos.
1	$632.07	$52.68	$29,088.02	$198,454.96	24.12 / 290 mos.
2	$632.07	$105.35	$46,492.13	$181,050.85	20.5 / 246 mos.
3	$632.07	$158.02	$58,320.95	$169,222.03	17.92 / 215 mos.
4	$632.07	$210.69	$66,969.79	$160,573.19	15.92 / 191 mos.
5	$632.07	$263.36	$73,607.77	$153,935.21	14.34 / 172 mos.

One-time Payment

It may not be possible for you to increase your monthly mortgage payment. Keep in mind that most mortgages will permit you to make additional payments to your principal at anytime. Perhaps, five-years after moving into your home you receive a larger than expected tax return, or an inheritance or a non-taxable cash gift. You could apply this money toward your loan's principal, resulting in significant savings and a shorter loan period.

Example:

With a $100,000, 30-year, 6.5% fixed interest rate mortgage loan, the borrower will pay a total of $227,542.98 to pay back the loan in 30 years. That equals $127,542.98 in interest payments.

If the same borrower makes a one-time $5,000 payment the first day of year 6, he/she will pay a total of $204,710.75 and pay off the loan in 27 years (324 months). That's a savings of $22,832.23 in interest.

TO RECEIVE THE VALUE YOU'RE LOOKING FOR AND THE PROFESSIONAL SERVICE YOU EXPECT..CALL JOHANNA KNIGHT FOR ALL YOUR REAL ESTATE NEEDS

Welcome to the nhhomeview.com Web site (henceforth referred to as the “Web Site”), controlled and operated by Johanna Knight at 10 Pettee brook Lane, Durham NH. The goal of this Web Site is to provide you with access to the most complete network of real estate related products, services and relevant links, Johanna Knight copyrights, trademarks, service marks and other intellectual property rights protect all content.

Content on this Web Site or any Web Site owned, operated, licensed or controlled by the Providers is solely for your personal, non-commercial use only. However, you may not reproduce, republish, upload, post, transmit, distribute, and/or exploit the content or information in any way without the prior written consent of (agent name) or the providers.

In accordance with our goals, this Web Site may contain “links” to other Web Sites. They may or may not be affiliated with the Web Site and or (agent name), and they may have terms that differ from, or contain terms in addition to, the terms specified here. Your access to such Web sites through links provided on this Web Site is governed by the terms of use and policies of those sites, not this Web Site. They are provided for your convenience and information only and, as such, you access them at your own risk.