A mortgage is officially repaid when you pay back what you borrowed — the principal. But, the amount of interest you’ll hand over to the bank is greatly affected by how long it takes you to make that final payment. In other words, you’ll get to hold on to a lot more of your hard-earned cash by doing one thing: paying your mortgage off faster. If you’re in a 30-year mortgage, switch to a 15-year.
Sound intimidating? It’s not — we’ll show you how.
Do the math the banks wish you wouldn’t
It’s a simple equation, but bankers don’t want you to solve it. After all, big banks make millions of dollars from interest. Avoiding it is not something that’s in their interest (pun intended) to do.
Have you ever noticed the interest accrued on your credit card, automobile or student loan statement and been shocked by the total you see? It happens to people every day! Take this account from a borrower writing on morningfinance.com: when he put pencil to paper, it turned out that 72% of the monthly payment on a 30-year mortgage was going straight to interest. By switching to a 15-year mortgage, he could save $159,447.09 in pure interest.
Compare rates to secure the most savings
By now you understand that your savings are reliant on your interest rate. There’s only one way to ensure that you get the best interest rate available, and that is to compare rates from banks all around the country. Sound impossible? Not with LendingTree. LendingTree makes banks compete for your business. The LendingTree website is fast, the service is free, and the results are yours with no obligation. What are you waiting for? Cut your 30-year mortgage in half today and thank us later.