How Much Can You Save By Paying More Than Your Mortgage's Minimum?Article Posted by Expert Author: Sam Stieler on 05/06/2013
You've likely heard the advice that if you want to save big on your mortgage, paying more than your monthly minimum can have a huge impact. How does it all work? Surely you'll get it paid off sooner because you'll be paying off the balance faster than you've agreed to, but there can be a larger impact as well. First of all, when you pay the principle down then you'll pay less interest over the course of the loan. Depending on how high your interest rate is and how much additional you can pay down, this can have a significant impact. Use a mortgage interest calculator to discover exactly how much you can save.
You should also consider that paying down more of the balance on your loan could make your situation more attractive if you want to refinance. One of the many things a lender will take into consideration is how much equity you have in your home, which, put simply, means how much of your home is paid for. This also makes it easier to use your home as collateral for other types of loans. The more you have paid off, the higher your cash flow is and the better position you'll be in financially. Check out our free resources at www.home-mortgage-calculator.com to learn about your options in budgeting for a new home mortgage, or determining how a refinance might help you achieve your goals.
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