Mortgage acceleration is as easy as adding an additional $100 per month to your principal mortgage payment. This small step can literally save you thousands of dollars over the life of your loan. Making additional principal contributions on your mortgage will save interest, build equity and shorten the term of your mortgage.
If you invest in a savings account, you will make less than 1% and would have to pay income tax on the earnings. On the other hand, contribute something extra to your house payment and you’ll earn at the mortgage interest rate which is certain to be more than you are earning in the bank.
Reducing your cost of housing is another way to improve the investment in your home. Becoming debt free is a worthy goal that is achieved with discipline and good decisions. Suggestions like this are part of my commitment to help people be better homeowners when they buy, sell and all the years in between.
In conclusion, if you just add $25 per month to your mortgage payment, or round it up to an even number, you will be surprised at how quickly the principal balance with decrease. Before you know it, you will be mortgage free! Mortgage acceleration is a smart way to go!
Check out what would happen if you were to make additional payments on your mortgage and how quickly mortgage acceleration can reduce your mortgage.
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For more information about mortgage acceleration or Denver Colorado Real Estate or homes for sale along the Front Range, call Marilyn Van Steenberg, Dream Home Consultant, Certified Residential Specialist and Eco-Broker.
Specializing in Buyer Representation & Relocation Real Estate Transactions.