A great way to save on interest costs and reduce the life of your mortgage is by making annual principal payments.
A principal prepayment of $2,000 a year can make a substantial difference in the time it takes to pay off your mortgage. Take a look:
|Mortgage 25-year Amortization||Effect of $8,000 principal payment|
|Mortgage repaid (years)||25||16.3|
|Total interest cost(7)||$103,165||$79,873|
|Interest savings(7) vs. 25-year mortgage||N/A||$23,292|
Call us today about managing your mortgage. We can help explain your options and offer advice on mortgage solutions to help you achieve your goals.