mortgage

6 New Year's resolutions for homeowners

Make extra mortgage payments
Next
Slide 2 of 7
Back
Make extra mortgage payments

Making extra payments can dramatically shorten the time until your mortgage will be paid in full, says Ronit Rogoszinski, a wealth adviser at Arch Financial Group in Garden City, N.Y.

Consider: The monthly principal and interest on a $150,000 mortgage with a 30-year term and an interest rate of 5.5 percent totals $852. Paying an extra one-twelfth of that amount, or $71, each month would increase the payment to $923, but also shorten the term by five years and one month and cut the interest expense by $30,789.

"The more payments you make in a shorter period of time, the less you end up paying in the long term, and the faster you'll get rid of your mortgage," Rogoszinski says. "If you can put aside a couple of dollars every week and then end up plugging it into your mortgage, that's awesome."


Next
Slide 2 of 7
Back

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
MORTGAGE & REAL ESTATE NEWSLETTER

Timely market news and advice for consumers ready to buy, sell or invest in real estate. Delivered weekly.

Blog

Holden Lewis

Much ado about mortgages

A bunch of agencies are trying to expand the number of would-be homeowners who can qualify for mortgages. But I'm skeptical that these efforts will help many people.  ... Read more

advertisement
Partner Center
advertisement

Connect with us