Pay
off your loan ahead of schedule and save money
too!
There are several ways
to pay off your loan ahead of schedule but they all
boil down to the same thing; getting more money applied
to the principal. You can make more frequent payments,
make a large payment in the beginning, or make larger
payments than the required amount. Consider the loan
below:
| Loan amount: |
$100,000 |
| Interest rate: |
7.5% |
| Period: |
30 Years |
| Monthly payment: |
$699.21 |
|
This loan
is amortized over 30 years and over the
course of the loan $251,717 will be paid.
Look what happens when extra payments
are made. |
|
|
Example
|
Required
Payment
|
Extra
Payment
|
# of
Payments
|
Total
Paid
|
Savings
|
Finance
Charges
|
|
A
|
$699.21
|
0
|
360
|
$251,717.22
|
0
|
$151,717.22
|
|
B
|
$699.21
|
$100
|
245
|
$195,406.45
|
$34,898.79
|
$95,406.45
|
|
C
|
$699.21
|
$150
|
214
|
$181,511.52
|
$48,793.72
|
$81,511.52
|
|
"B" & "C" saved
lots of money on the cost of their loans
and they paid them off way ahead of schedule.
I am happy to prepare a free
loan analysis for you. If you would like
to see what extra payments could do to reduce
your loan just give me a call or e-mail me
the following information:
-
-
The interest
rate on your loan
-
The amortization
period (how many years 15,20,30?)
-
The extra monthly
payment you want to make.
|
