This bi-weekly payment schedule adds up to one extra payment each year, saving you $24,000 and four years off your mortgage. Make one extra payment each quarter to shave 11 years and nearly $65,000 off your mortgage.ĭivide your payment by 12 and add that amount to each monthly payment, or pay half of your payment every two weeks. Here’s how extra payments would affect a $220,000, 30-year mortgage with a 4 percent interest rate: Once your mortgage’s principal balance is 80 percent of the original value of your home, you can request removal of your PMI. Plus, with each extra payment, you’ll be closer to removing private mortgage insurance faster from your loan if you have it. When you throw extra money at your monthly mortgage payment, more of each payment after that goes toward your principal balance. Here are Ramsey’s tips for how to pay off your mortgage early. His organization, Ramsey Solutions, counsels people on getting out of debt by following the Dave Ramsey Baby Steps - the sixth of which is paying off your mortgage early. Completing a mortgage payoff early could save you a bundle of money, not to mention years of not having a big payment hanging over your head each month, according to Dave Ramsey, financial guru, author and host of “The Dave Ramsey Show.” The amount you have to finance through a mortgage loan and the long-term commitment you’re making to real estate can be overwhelming. Mandatory Credit: Photo by MARK HUMPHREY/AP/REX/Shutterstock (6378435g)Dave Ramsey Financial talk show host Dave Ramsey works in his broadcast studio in Brentwood, Tenn.
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