MORTGAGES
Let's get right into this.
It's all about the mortgage
interest rate. Consider the following
|
Mortgage |
Mortgage
Amount |
Interest
Rate |
Length |
Monthly
Payment |
Total Paid
over Term |
|
Mortgage A |
$200.000 |
10% |
30 Years |
$1755.14 |
$631,851 |
|
Mortgage B |
$200.000 |
7% |
30 Years |
$1330.60 |
$479,017 |
|
Mortgage C |
$200.000 |
5% |
30 Years |
$1073.64 |
$386,511 |
As you see, getting the best
interest rate can put a lot more money in your pocket each month. More
significantly, look at the amount saved at the end of the mortgage.
The difference of just two percent (Between Mortgage B and C) equates to
almost one hundred thousand dollars. That is actual dollars.
Ten percent mortgages were the
average not too long ago and will be back again.
Using the same numbers as above,
if you are able to refinance and drop your interest rate from seven percent
to six percent (just one percent), the savings would $131.50 per month and
$47,341.42 over the term of the mortgage.
The savings are more when
reducing one percentage point at higher rates like from eight percent to
seven percent.
Twenty-five years of service is
a long time. For those who are disciplined and plan well, it can mean
much luxury at retirement. The key is simple; investments.
In this article we will try and
give you an ide
Mortgages |
