Here’s a great tip from our Owner’s (Lawnae Hunter & Tona Restine) here at Windermere:
In this day and age of high living expenses and hard earned dollars, we really enjoy it when we can assist our clients with a money saving idea. Here’s one of the best ideas we have ever heard that will pay big dividends.
A typical mortgage is written for thirty years and yet if you have ever looked at your monthly payment breakdown you will note that the interest is generally about 90% of the loan payment and the principal payment 10%. The principal percentage of the loan will increase over the life of the loan and the interest will reduce.
A quick and easy method to save $1,000 of dollars is to convert your loan to a fifteen year payback. It’s easy and cost effective.
Simply send the principal for the upcoming month, along with the regular payment of principal + interest as shown on the monthly payment coupon. To avoid confusion, send two separate checks and indicate “apply to principle” on the appropriate check. Each month you do this, you take a full payment (both principle and interest) off the end of the loan! At the end of a fifteen year period, you will have paid off the entire loan. In the event you don’t own the house for fifteen years, you will have large equity to recapture in sale; and in any month you don’t have funds to pay the extra principal, just skip it.
This is an affordable, easy way to gain wealth. Why pay all the extra interest to the lender when you can save?
Just imagine how this extra equity can be yours! Just remember to mark your second check to be sure that it is applied to the principal only and check your monthly statement to be sure the lender complied with your request.