SAVE BY MAKING LUMP-SUM PAYMENTS
SAVE $ 22,065.09 on interest charges !!!!
Let us say you take out a 1st Mortgage for $ 150,000.00 at a rate of 7 % and is Amortized over 25 years.
Your payments would be $ 1050.62 per Month for 25 years.
You would have paid $ 315,188.93 of which $ 165,188.93 was interest.
Most lending institutions will let you make Lump-Sum Payments on every anniversary date of your Mortgage upto 10 % of the Outstanding Balance.
For this example we will make ONLY 2 (TWO) Lump-Sum Payments of $ 3,000.00 each, the first on the 1st Anniversary, the 2nd on the 2nd Anniversary.
You would have paid $ 293,123.84 of which $ 143,123.84 was interest.
You would have SAVED $ 22,065.09 on interest charges over 274 months.
You paid of your Mortgage 26 Months sooner.
