Outsmart Your Mortgage Company Out Of Thousands Of Dollars

Dated: 09/02/2015

Views: 805

Image title

There is a little known Secret that Banks & Mortgage

companies don't want you to know. This secret can

save you Thousands of Dollars in Interest on your

Mortgage. While others are paying years and years of

interest, you can have your mortgage PAID OFF and

Thousands of Dollars in YOUR Savings Account.

It's Easy, if you know the Secret.

Most people think the only way to save interest money on your home mortgage is to Refinance, which can carry high costs. But, there is a better way. It's called Pre-Payment.
Pre-payment is simple, it's paying a little more each month with your regular monthly mortgage payment. The little extra each month goes directly to Principal. Principal is the original amount you borrowed before they charge their interest. Interest is the Bank's Profit. You're cutting the Profit the Bank makes, which is why they Don't Want you to Find Out How Pre-Payment works.
Here's an Example: On a standard fixed rate mortgage, the payment each month is calculated to include the Principal and Interest. If you borrowed $200,000 at 5% interest for a 30 year fixed rate, your monthly payment would be $1,073.64 per month. Pay this amount each month for the 360 months (30 years) and the total you paid is $186,510.40 in INTEREST, plus the $200,000 you borrowed, for a total Payback to the Bank of $386,510.40.
Using the same $200,000 mortgage and adding an additional $89.47 to your monthly payment, $1,163.11 principal and interest. By paying this added $89.47 each month you would save $33,995.15 in Interest Payments to the Bank and Payoff the Entire Mortgage in 303 payments.  That is 57 LESS Monthly Payments. That's $33,995.15 IN YOUR POCKET and pays off your mortgage almost FIVE YEARS LESS. Now you know why the Bank does not want you to find out about Pre-Payment.
You can start pre-payment at any time, not just at the beginning of the mortgage. You are not obligated to pay the extra every month. If you want to send more one month and less others, or skip some months, it's up to you. Bottom line is, the more you Pre-pay, the MORE MONEY you Save and Earlier you Payoff your Mortgage.
Be SURE to mark directly on your payment coupon, or online, that you want the extra money applied to the PRINCIPAL amount of the Mortgage.
After you have paid off the mortgage in the 303 months, a good idea is to invest the monthly payments directly into a Savings or Money Market account for the remaining 57 months. If you saved the $1,163.11 monthly, using an estimated interest rate of 1%, your Savings would add up to $66,297.27 instead of just a Paid Off Mortgage.
Isn't it a good thing you read this and have Thousands in Savings, Outwitting your Bank or Mortgage Lender, while People who don't know this Secret continue to pay the Bank all that PROFIT MONEY for the Bank.
Hope this Helps. Image title
Kathy McKinney, Realtor
Platinum First Realty, Harleysville
Office 267-647-9800 ext 412
Platinum Search Website: www.kathymckinney.com
Bank Foreclosures Website: www.reohomespa.com

Blog author image

Kathleen McKinney

My experience level is at your disposal ! My background in mortgages and rock solid understanding of how to finance a home ... will benefit all of mymy customers! I exceed all my customers expectatio....

Latest Blog Posts

1010 N. Hancock St. "WeWork" Philadelphia, PA 19123 eXp Realty Philadelphia-Now Open!

 eXp Realty-Philadelphia is Located at WeWork in Northern Liberties at 1010 North Hancock St. Philadelphia, PA  19123.eXp Realty is proud to be located at WeWork (the former Schmidt's

Read More

How to Use Comparable Sales to Price Your Home

By: Carl VogelPublished: August 5, 2010Before you put your home up for sale, understand how the right comparable sales help you and your agent find the perfect price.How much can you sell your

Read More

Quick Tips to Remove Hardwood Scratches

Hardwood floors can get scratched up, whether by moving furniture or rambunctious kids. But many scratches can be easy to repair.“Surface scratches are caused by everyday use, grit

Read More

The Everything Guide to Selling Your First Home

The Everything Guide to Selling Your First HomeArticle From HouseLogic.comBy: HouseLogic How to figure out exactly what you want, and how to work with the experts who'll help you get it,

Read More