Mortgage Calculator Reveals Big Savings With Small Payments

Mortgage Calculator Reveals Big Savings With Small Payments
Having agreed on​ a​ monthly payment schedule with your mortgage lender doesn't necessarily set that amount in​ stone - that's just the​ minimum you​ can pay! By playing with a​ mortgage calculator,​ particularly a​ pre-payment loan calculator,​ you​ can see where extra payments can make long-term savings on​ your mortgage .​
The mortgage calculator will quickly show that you​ don't have to​ pay large sums of​ additional cash in​ order to​ make a​ difference .​
Even regular smaller sums can greatly reduce the​ length of​ time you​ are paying your mortgage .​
They will even reduce the​ amount of​ interest you​ would be paying .​
Imagine that the​ mortgage you​ thought would be with you​ until you​ were 50 can be painlessly paid off by the​ time you​ are in​ your mid 40s! That's strong motivation to​ try out the​ appropriate mortgage calculators to​ see what kind of​ financial additional payments you​ need to​ make this achievement.
The first thing you​ need is​ to​ use a​ home budget calculator to​ check your current financial situation .​
How much disposable income do you​ have each month? Where does this go currently? Could you​ comfortably commit an​ additional $50 a​ month,​ for example,​ to​ your mortgage? Put that figure into the​ mortgage calculator and see what difference it​ would make to​ your long-term mortgage picture .​
It can get addictive to​ try and shave off more of​ your disposable income and put the​ increased amount into the​ mortgage calculator,​ but beware of​ over-stretching your finances .​
While it's exciting to​ see how much faster you​ could pay off your mortgage,​ and so fast to​ see the​ results that the​ pre-payment mortgage calculator gives you,​ it's also easy to​ get carried away and forget that you​ need to​ keep finances in​ hand for other things!
One of​ the​ best things you​ can do is​ to​ find a​ minimum additional monthly payment that you​ can make without creating too much of​ a​ problem - perhaps by canceling subscriptions you​ don't use,​ or​ by cutting out one trip to​ a​ well-known coffeehouse each week .​
Use the​ mortgage calculator to​ work out the​ difference this makes to​ your mortgage principal .​
This is​ the​ least impact you​ will make on​ your mortgage.
Next try and save an​ additional sum in​ a​ separate banking account and try not to​ touch this .​
If you​ haven't had any emergencies requiring the​ money during the​ year,​ withdraw it​ after 12 months and make a​ single extra additional larger sum payment against the​ capital (still making that basic monthly payment in​ the​ same month!) and then use your mortgage calculator to​ see how much difference this has made .​
This way you​ can keep that money handy and still reduce your mortgage .​
But it​ will not reduce your interest as​ much as​ paying out monthly .​
Be sure to​ check out all these variables on​ the​ mortgage calculator.
A mortgage for your home is​ a​ long-term commitment,​ but using a​ mortgage calculator you​ can see how it's possible to​ reduce the​ time period with additional small monthly payments .​
Paying off your mortgage quicker,​ and paying less interest,​ without financially hurting yourself - isn't that worth exploring further?

You Might Also Like:

Powered by Blogger.