| Save Jaw Dropping Amounts Of Cash With A Mortgage Overpayment Calculator |
| Articles - Mortgage |
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You can find out how much you can save by paying extra each month with an overpayment calculator.
You can find out how much you can save by paying extra each month with an overpayment calculator. The general theme is to pay extra on your monthly mortgage payments. Pay 600 instead of 500 if you can. The savings made at the end may stagger you. We're talking thousands saved and years knocked off. As every mortgage deal is slightly different it's hard to give examples for your figures. You should put your figures into an overpayment calculator and see your own results. We could use an example mortgage of 100k at an interest rate of 5%, which would give you monthly payments of around 580. Instead of 580, pay 680 a month and the example mortgage is shortened by 6.3 years and saves about 20k in interest. Considering you agreed to 25 years on the deal you are now free 6 years early. If you could afford some overpayment then in my honest opinion you should. The benefits can be great in the later years of the mortgage. I can give you another example, but paying 200 extra instead of 100. Yes this is much more but the savings are vast. If you did pay this two hundred extra you would save almost ten years off the mortgage and save cash to the sum of 32 thousand. They are really eye opening figures. An added benefit to paying off early is the years you knock off. You don't have to pay anything and this could total an awful lot of cash saved. You could save yourself another 40 thousand because you aren't paying the 580 per month for the last 6 years. It's got to be great news for you when all this extra saving doesn't even come out of your pocket. It stays there. We've been talked at and advertised to over the years. And we now firmly believe we have to stick with the deal offered, but that's poppycock. If you suddenly came into money would you keep the mortgage on because you agreed to it at the outset? I bet you wouldn't and you don't have to if you overpay to reduce it. However, your lender won't tell you any of this! DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Monty Burn wrote a bestselling book call the Mortgage Bible, grab your FREE copy at his website Mortgage Watchdog or have a tinker with the mortgage overpayment calculator and surprise yourself at how much cash you could save. |