Save Interest, Build Equity & Shorten the Term

save interest build equityInvesting in savings accounts today will earn you back less than one percent on your money and you will be required to pay income tax on those earnings. But if you contribute something extra to your mortgage each month, you will earn savings in a more beneficial way.

Paying additional principal payments on your home mortgage will save you interest on the loan. As my example below shows, an additional $100 per month will end up saving you thousands in interest and it will shorten your loan term as well.

build equity save interest

By reducing your loan amount quickly, you increase the investment in your home. Your equity grows quicker and you work your way toward being debt free sooner. Going into retirement with no debt takes planning, discipline and good decisions.

This suggestion is just one of the ways I am committed to helping you be a better homeowner whether you are buying, have Fairfax homes for sale or are just happy staying in your home. Use my example and take a look at what would happen if you made extra payments on your home mortgage loan.

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