"A penny SAVED is a penny EARNED !" ..... NOT NECESSARILY !
If you choose NOT to make a Lump Sum Payment on your mortgage (as shown in Money Saving Ideas 4b)
and instead you put that $ 500.00 per year into your Savings account, at your Bank; YOU just LOST $ 6,023.60
At a normal current saving account rate: (Currently at our bank)
$ 0.00 to $ 4,999.99 you get 0 %
$ 5,000.00 to $ 9,999.99 you get .25 %
$ 10,000.00 to $ 25,000.00 ouy get .5 %
(See Sample 5a)
You would save, $ 11,330.09 over 22 years + 9 Months
(same period of time as shown in Money Saving Ideas 4b).
HOWEVER, your mortgage would have COST you $ 17,366.71 MORE over that same period.
THAT difference is not "A penny SAVED"; it is MANY pennies LOST.
Now, the Mortgage Holder is $ 6,023.60 richer.
