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If you want to know how to pay off the house faster keep reading.
You know that all you need to do is put all your “extra” money into the house payment and then your house will be paid off faster. Well yes…BUT you are probably asking what extra money are these people referring to?!
Check out this post about the latte factor. Gives you an idea of how you can come up with $960 plus dollars a year to put towards your house payment!
Did you know that putting one extra house payment a year will cut your total paid cost by thousands and cut your mortgage by about 5 years! So how do we get that extra payment? It’s all about that latte factor!
Here is an example I wanted to share with you from mortgage calculators plus:
Original mortgage amount: $200,000
Interest rate: 6.5 percent
Term: 30 years
Monthly payment: $1264
Total interest paid on your loan: $255,088.98
How much you will really pay in full at the end of your term: $455,088.98
Original mortgage amount: $200,000
Interest rate: 6.5 percent
Term: 30 years
Monthly payment: $1264
Additional payment per year of: $1264
Total interest paid: $199,098.92
Total cost of your loan when paid in full: $399,098.92
Pay off date of the loan is reduced by: 6 years!
After looking at an example like that I want to cut out all the latte factors I can to get working on that extra payment a year!
Now you know how to pay off your house faster by using the latte factor!
Figure out your latte factor then tell us in the comment section below what it is.
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