SAVE BY MAKING LUMP-SUM PAYMENTS
SAVE $ 17,353.69 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 a Lump-Sum Payments of $ 500.00 each and every Anniversary date.
You would have paid $ 297,835.24 of which $ 147,835.24 was interest.
You would have SAVED $ 17,353.69 on interest charges over 274 months.
You paid of your Mortgage 27 Months sooner. (274th payment ONLY $ 15.98)
