>How Can I Pay Off My Mortgage Faster? Basic Concepts—–Louisville Kentucky Mortgage Refinance


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How Can I Pay Off My Mortgage Faster? Basic Concepts

A 30 year mortgage, if paid monthly, is about 60% paid off in 24 years. If the borrower makes one extra monthly payment per year on a 30 year mortgage, the entire mortgage is paid off in 24 years. That’s six years of vacations, helping your children with college, or bolstering your retirement accounts.
To understand this, let’s look at how your mortgage payment is determined. We’ll use a $200,000 mortgage at 6.0% for our example.

  • The monthly payment would be $1199.10.
  • The interest payment is $200,000 * .06 = $12,000/ 12 months = $1000
  • The principal payment would be $199. That’s right. After one month you will have paid $1199.10 and your balance will have gone down $199.
  • A lower principal balance = a lower amount of interest. Each month the amount of interest paid goes down and the amount of principal paid goes up.
  • Anything extra

But who has an extra $1200 to make that extra payment? You do.

Call me today for your free refinance mortgage analysis..Rates are low and it is time to refinance
 I can be reached locally at 502-905-3708 or email me your questions to kentuckyloan@gmail.com


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2 thoughts on “>How Can I Pay Off My Mortgage Faster? Basic Concepts—–Louisville Kentucky Mortgage Refinance

  1. >Mr. Lobb, you must be one of the best mortgage loan providers in your area.When we moved in to Alberta, best mortgages were referred to us by our broker. We were able to work on a lot of options until we got a mortgage that really works for us. Getting an Alberta home loan also got easy and hassle-free, thanks to our broker.If ever I have friends or relatives who'd like to settle in KY, I'd show your blog to them. Thanks!

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