Oh, Oh, It's Magic! Save $$$ On Your Mortgage

Do you want a tip that will literally save you thousands of dollars in interest? By making one extra payment per year on your mortgage, you can literally take years off of your mortgage and save thousands of dollars. For example, if you have a $100,000 mortgage at 6% for 30 years, your monthly payment is $599.55. By making one extra payment of $599.55 per year, you'll reduce your payback time by 5-1/2 years and save over $23,000 in total interest. Wow! Banks will allow you to make extra payments against principal at any time. You can accomplish this in a variety of ways - but the easiest is to simply add 1/12 of your monthly total to your monthly payment. In this example, by simply adding $49.96 to $599.55 every month will save thousands of dollars. Another strategy would be to make an extra monthly payment every month that you receive an extra "paycheck". For example, most people get paid 26 weeks over a year - resulting in two months that have "extra" paychecks. In this example, if you doubled your mortgage payment in each of these months, the mortgage payback time would be reduced by 9 years and have savings of over $37,000 in interest. You can check it out yourself against your own mortgage by using the mortgage calculator at www.bankrate.com (see link below). It's not magic, but it will make you feel like a financial wizard!