Mortgage Overpayment Calculator - A Way To Give Your Lender The Finger?
What can a mortgage overpayment calculator do for you?
What can a mortgage overpayment calculator do for you?
It simply calculates how many years you can knock off your mortgage and how much cash you can save by making overpayments each month.
If your monthly payments are 500 then pay 550 or 600. It all adds up to pretty impressive saving later on.
The average mortgage falls over twenty five years and paying a bit extra each month will really mount up over the period of the mortgage.
Even the tiniest amount overpaid each month will result in you knocking some time off the length.
Plus you get to save a bunch of cash because the interest isn't as much over the length.
Let's take a 100,000 mortgage at 5% interest and say we took it over 25 years.
On this mortgage the payments would be in the region of 580 a month. But if you could afford a 100 extra each month you could build a very good saving.
Doing this could shave over 6 years off the term. Imagine, mortgage free in 18 and a half years.
There's also the cash saving which would be around twenty thousand. Six years and twenty thousand saved. Very nice.
Now, I imagine you're thinking that a saving of twenty grand isn't that good considering you paid nearly 22 grand in overpayments in the previous 18 years.
The real plus point is knowing that you have nothing to pay for the last 6 years and this could be a large amount.
Think about your 580 per month payments over 6 years. It works out at a staggering 42 grand saving.
What it all means is that if you can pay the 20 grand in overpayments early on, and not towards the end of the mortgage you save 40 grand or more.
If that sort of saving doesn't excite you then you may need to seek medical attention!
Go check out a mortgage overpayment calculator and see which year you can afford to give your lender the finger!
What can a mortgage overpayment calculator do for you?
It simply calculates how many years you can knock off your mortgage and how much cash you can save by making overpayments each month.
If your monthly payments are 500 then pay 550 or 600. It all adds up to pretty impressive saving later on.
The average mortgage falls over twenty five years and paying a bit extra each month will really mount up over the period of the mortgage.
Even the tiniest amount overpaid each month will result in you knocking some time off the length.
Plus you get to save a bunch of cash because the interest isn't as much over the length.
Let's take a 100,000 mortgage at 5% interest and say we took it over 25 years.
On this mortgage the payments would be in the region of 580 a month. But if you could afford a 100 extra each month you could build a very good saving.
Doing this could shave over 6 years off the term. Imagine, mortgage free in 18 and a half years.
There's also the cash saving which would be around twenty thousand. Six years and twenty thousand saved. Very nice.
Now, I imagine you're thinking that a saving of twenty grand isn't that good considering you paid nearly 22 grand in overpayments in the previous 18 years.
The real plus point is knowing that you have nothing to pay for the last 6 years and this could be a large amount.
Think about your 580 per month payments over 6 years. It works out at a staggering 42 grand saving.
What it all means is that if you can pay the 20 grand in overpayments early on, and not towards the end of the mortgage you save 40 grand or more.
If that sort of saving doesn't excite you then you may need to seek medical attention!
Go check out a mortgage overpayment calculator and see which year you can afford to give your lender the finger!
About the Author:
Monty Burn published a bestselling book call the Mortgage Bible, grab your copy at his website Mortgage Watchdog or have a tinker with the mortgage overpayment calculator and surprise yourself at how much money you could save.
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