The Benefit of Added Payments on Your Mortgage
Column distributed by Hearst Connecticut Media Group.
Links to resources referenced:
- Will Interest Rates Go Down in October? October 3, 2024.
- https://themortgagereports.com/32667/mortgage-rates-forecast-fha-va-usda-conventional
- Related column excerpt:
- “Mortgage rates may be declining, which puts new homebuyers in a better position than just a year ago.”
- Calculator.net -- Mortgage Payoff Calculator.
- My Home by Freddie Mac Extra Payments Calculator
- https://myhome.freddiemac.com/resources/calculators/extra-payments
- Related column excerpts:
- “Another alternative is to make occasional payments. Say you receive an annual bonus check each January. For the next three years, each January, you pay an extra $10,000 to the bank. That cuts approximately $90,000 off your interest payments and saves you seven years off your loan, so that your loan would be fully paid by October 2047, using the Extra Payments Calculator provided by Freddie Mac.”
- “But, if you wait to use those $10,000 bonus payments until January 2034, 2035 and 2036, your savings will be about one-half less -- only $48,860, saving you four years and seven months instead of seven years in the earlier example, illustrating the time value of money.”