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Ten Financial Tips for Women
On average, women earn 76 cents for every dollar men earn in the workplace. Because women typically spend approximately seven years out of the work force to have and raise children, their earnings are even further curtailed. With lower pay and...
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Try to Avoid Probate
Below is a discussion of how to handle probate .
First of all, what is probate? We’ve heard various things about probate and we are pretty sure that it deals with court matters that involve our property. We generally know that probate...
Who will be their Guardian?
If you are like most people today, you do not have a will. The reasons for this failure are many, with the most common being along the lines of “I don’t have enough assets to worry about”, “I don’t know how to write a will”, or “Lawyers charge a...
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Homeownership: Could it be in Your Future?
Whether you are young, newly divorced or in transition, or a newcomer to America , you rightfully want full participation in the American Dream to own your own home. Still, renting might be the best choice (or only alternative) for you right now. ...
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Add A Few Dollars To Your Mortgage Payment
Many of us don't believe that a few dollars can make a big
difference. In a lot of cases that is true. But when it comes to
mortgages or any other type of loan, a few extra dollars can save
you Big Bucks.
The chart below gives examples of three different loan terms and
what paying between $75 to $100 more a month would do to the
mortgage. It is based on a $100,000.00 loan at 7% interest.
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YearsInt Rate Payment InterestTotal of PaymentsSavings
307% $665.30$139,508.00$239,508.00 N/A
Round Payment to $750.00 $93,994.86$193,994.86$45,513.14This loan
would be paid off in 259 months instead of 360.
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207% $775.30$86,072.00$186,072.00 N/A
Round Payment to $850.00 $69,409.58$169,409.58 $16,662.42This loan
would be paid off in 199 months instead of 240.
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157% $898.93$61,789.40$161,789.40 N/A
Round Payment to $1000.00 $50,517.67 $150,517.65 $11,271.73This
loan would be paid off in 151 months instead of 180.
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By adding $84.70 to your 30 year loan you can save $45,513.14
and pay the loan off in 21 1/2 years.
By adding $74.70 to your 20 year loan you can save $16,662.42
and pay the loan off
in 16 1/2 years.
By adding $101.07 to your 15 year loan you can save $11,271.73
and pay the loan off in 12 1/2 years.
You can also see by the chart that obtaining a shorter loan term
when you buy your house can save a lot of money.
There are a couple of things that you need to check. First is
that your loan agreement doesn't allow the loan company to
charge penalties for early payment. Secondly, if you itemize
your federal income taxes and deduct mortgage interest, paying
less interest will mean a lower deduction. I believe it is safe
to say that the interest savings will far outweigh the tax
savings.
Even if you don't have $75 to $100 a month to add to your
mortgage payment, even $25 would save a lot.
If you would like to have your own Loan Calculator, just visit
www.pine-grove.com to download their Loan*Calculator! Plus.
This is a free version and has everything the average family
can use. It is also the Loan Calculator I have used for several
months. Highly Recommended.
About the Author
Terry Rigg is the author of Living Within Your Means - The Easy
Way http://www.homemoneyhelp.com/ebookadpage.html and editor
of The FREE Budget Stretcher Newsletter and Budget Stretcher
web site http://www.homemoneyhelp.com. He has 25 years of
experience counseling individuals and families concerning their
personal finances.
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