Most mortgage payers don’t realise that a 25 year mortgage doesn’t have to be 25 years.
Over the years we’ve been brainwashed into thinking this is how long we should have this mill stone round our necks.
Of course this is all for the benefit of the lenders, not us. They (the lenders) aren’t very forthcoming with information that could possibly save you thousands of your cash. Why would they be.
Truth be told, most mortgages a pretty flexible. If we could afford to overpay a bit every month then there’s nothing stopping us. In fact it’s a great idea to pay a bit extra as the benefits later could be staggering.
When we pay extra now, it compounds over the years and results in a bundle of cash saved later.
If you took a hundred grand mortgage at 5% interest and could afford to pay an extra 100 per month this could save you about 20 grand.
Yes, twenty grand. Not only that but it would knock 6 years off your mortgage term.
You may disagree but 20 grand in my pocket and only a 19 year mortgage is something that appeals to me.
After the 19 years is up you won’t have anything to pay.
For the remaining 6 years of your planned mortgage you pay nothing, no 680 a month. Zero. Nice eh?
A 680 saving every month over 6 years comes to a staggering 48 grand that you can keep.
Mortgage overpayment calculators allow you to put you particular figures in and get an idea of what you could shave in years and save in cash.
The beauty of it is you don’t have to agree to pay the extra every month. Pay when you can, don’t when you can’t. Every bit extra that you can pay will be multiplied in savings for you later on.
So now you have an idea of what a mortgage overpayment calculator can show you, go have a tinkle with the one on my site. Don’t forget who’s money it actually is. Yours not theirs!
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