Did you know that by making one extra payment a year on your mortgage and by rounding it up a bit, you could save your family a LARGE amount of money?
First, take a quick look at a typical mortgage amount; the average amount a house sells for in Pictou County is in the ballpark of $130,000. Our example will be a $130,000 mortgage at 4% interest, on a 5 year term, over 25 years.
The base monthly payment would be around $684.00. (does not include various fees, taxes...)
Over the lifetime of your mortgage (25 years) you would pay over $75,000 in interest. (OUCH)
Now, imagine if you rounded your payment up just a bit – to $700.00 a month. What difference would that make?
Your extra $16 a month (to bring your regular payment of $684 up to $700) would save you $3,246 off your mortgage interest and 1 year off your amortization. Your home is paid off a year sooner, and you save yourself a nice little chunk of money. Again, this is an extra $16 a month. We believe many of you could do this.
Now, suppose that you can also manage to put away $60 a month (your bank can likely set this up for you as an automatic monthly transfer to a savings account), and ONCE a year you make ONE extra payment of $700. What difference would that make?
Your extra yearly payments will have saved you $13,370 off your mortgage and 4 years off your amortization. Instead of it taking 25 years to pay off, it only takes 21 years. Now, we know doing all of this may not be easy, but the long-term gain is significant!
We encourage you to speak with a local mortgage specialist for more details about how you can get rid of that mortgage faster! If you aren’t sure who to talk to, give us a call and we can connect you with some highly qualified people who DO NOT CHARGE YOU for their time to look at your mortgage to see how they may help.
If you are looking for more information on how some payment options may help you get rid of that mortgage faster, email or call any time. We sell real estate - we do not do mortgages, but we know all the folks in the area that do, and we are all here and available to help you in any way we can.
Results Realty Atlantic Inc.
351 Stellarton Road
New Glasgow NS B2H 1M4
Call – 902-752-7227