Save on interest
How to Save Thousands of Dollars in Interest and Pay Your Mortgage Off Faster
1. Round Your Monthly Payment Up
This small adjustment can save you a large amount of interest and greatly shorten the length of your mortgage.
Example:
If your monthly mortgage payment is $734, and you round it up to $800, you could save over $48,000 in interest and reduce your mortgage term by 7.5 years.
2. Make One-Time Pre-Payments Using Your Income Tax Refund
This is another easy and effective way to reduce your interest costs and shorten your mortgage period.
Example:
If you have a $100,000 mortgage and receive a $1,000 tax refund, applying that refund toward your mortgage can save you over $8,600 in interest and reduce your mortgage by 1 year and 1 month.
3. Choose a 15-Year Mortgage
If your budget allows, selecting a 15-year mortgage instead of a 30-year mortgage offers substantial long-term savings.
Example:
With a $100,000 mortgage at 8% interest:
A 15-year mortgage may cost around $200 more per month,
But it saves you $92,083 in interest over the life of the loan.
Using these simple strategies is one of the most effective ways to lower your interest expenses and pay off your mortgage faster.
