Reported 8 months ago
With home prices soaring, many homeowners and buyers wonder how to pay off their mortgage quicker. Yahoo Finance's Personal Finance Editor Molly Moorhead suggests making one additional mortgage payment annually to significantly reduce the loan term and save on interest. By making this extra payment, borrowers can potentially shave off six years from a 30-year loan term and save nearly $100,000 in interest on a $300,000 mortgage with a 7% fixed rate. Moorhead advises considering factors like retirement savings and emergency funds before deciding to make extra payments if the mortgage rate is exceptionally low. Overall, making an extra payment annually can lead to substantial savings and faster equity building.
Source: YAHOO