Friday, March 6, 2020 / by Soraya Joud
This can shorten the length of your mortgage term and allow you to build equity faster. Your additional principal payment comes directly off the rear end of the loan and your balance is paid down faster. You'll have fewer total payments to make, in-turn leading to more savings.
This can be a dramatic improvement to financial targets, retirement plans, college fund acceleration, by shortening the life time of the mortgage and use of the future funds to save and spend on other important plans.
In the below example, an additional payment of 200 dollars to the principal on monthly basis, can shorten the life span of a 30 years mortgage by over 8 years, not to mention the ...