Generally, people go for mortgage if they have a reliable source of income. But even the most reliable jobs can betray at times. You may lose your job or come across an accident. You may withdraw a large amount from your savings for specific reasons. Whatever be the case, you are required to pay off the mortgage along with the accrued interest. Repeated failure of mortgage payments may lead to financial pressures as the interest adds up to a huge amount. It may now seem impossible to pay off your mortgage dues.
However, you can save while making your mortgage payments. This can be done by paying extra dollars towards the mortgage debt having a high interest rate. This method ensures that you pay the least amount of interest and repay your debts as soon as possible. You may have to pay a bit more than the minimum. But this will help you to save a fair amount of dollars even if it may be difficult to make initial payments towards the mortgage.
An extra payment of $75 will save you $54,666 in interest payments. Not only that, you will also have your home loans cleared almost about nine years earlier. Just by paying an extra $75 a month you knock nearly 10 years off your mortgage. The extra $75 that you paid in the first month would have cost you $180 in interest if you have borrowed for 30 years. As you have paid it already, you can reduce your last mortgage payment by $180. The next month's extra payment will reduce your last mortgage payment by $178. Always try to pay off the principal amount, which will reduce your interest rates automatically. This is not debt consolidation but budgeting your debt. There is much to say about mortgage, read our other articles for that. Our only intention is to help the customer to the maximum possible level, either personally or through our articles.
Sometimes even after knowing all the facts we get trapped into some liabilities. In case you are under the clutches of debt, rely on us. Our experts will help you to consolidate your debts and lead a debt free life. Debt consolidation is a much better way to get rid of your debts and we specialize in this field.