One of the most common home loans that people get is the 30-year mortgage. It’s hard to look at the final amount you’ll pay in interest when you’re at closing, so today I wanted to discuss a couple ways that you could help make that number a lot smaller.
If the average price for a 30-year fixed mortgage was $250,000 with a 5% interest rate, that means you’re spending $233,000 in interest over that 30-year span!
However, if you made an extra $100 payment each month, the life of your loan would go from 30 years to just 23 years.
Some people set up these payments on a biweekly basis, and others make a lump-sum payment with their annual bonuses.
Many think that in order to save on your mortgage this way, your contributions have to be huge. However, if you just intentionally make little steps along the way from the beginning of the loan, you’ll cut that interest rate almost in half.
If you have any questions or if you’d like for us to help you figure out how you can save on your mortgage, feel free to reach out to us. We’d be glad to help.