how to pay off your mortgage in 5 years

finding the right mortgage? You can imagine what is best for you immediately, but have you thought of what is best for the long term?

Imagine a 15-year fixed mortgages instead of the common 30-year mortgage. Think about it. Only the payment for 15 years on the mortgage means that your house is likely to pay before your kids leave for school. You can retire without a mortgage payment, which often delays retirement.

By cutting your mortgage term in the middle, can you believe that your payment has doubled. They are not. In fact, 15-year mortgages are very affordable. The monthly rates are a little higher, and the interest rates are generally lower.

What is surprising is the long-term savings in interest. For example, if you were to borrow $ 100,000 at 8% for 30 years you were the lender $ 164,000 in interest in addition to the original $ 100,000 borrowed. U.S. $ 100,000 loan at 7.5% interest for 15 years leads to a total interest paid of $ 66,862. That's a savings of $ 97,293.

If the increased payment will affect you, it's really not too much of a difference. The 30-year-old has a monthly payment of $ 734, while the 15-year-old has a payment of $ 927th If you have $ 193 extra per month you can save over $ 97,000 per year. Makes a lot of sense when you think of it in the conditions!

What happens if you simply that invests $ 193 per month, rather than your mortgage? If you can invest every month, without a single month for 15 years, you earn $ 47,495 if you were able to find an account to earn a steady 4% interest.

Yes, you will always be less of a tax allowance of less interest to pay. But tax breaks are not dollar for dollar savings. If you are in the 28% tax bracket, you are saving only 28 cents for every dollar you pay in interest. Seventy-two cents goes to the lender and is never seen again. What do you think: is 28 cents better than just saving the whole U.S. dollars to start with?

Personally, I am really very happy, disciplined enough to make up the difference in savings per month. I know that the money would only be absorbed by our livelihood.

Plus, with a 15-year mortgage you are gaining equity faster. Your home in half the time. You save thousands of interest. A 15-year mortgage could help you if they are financially free, and much sooner retire than a 30-year mortgage.

You may find that the 15-year mortgage is right for you. Do the math before you decide what type of mortgage to go with. Think long term. It's easy, easy on the monthly payments, especially if you try to log into an expensive apartment, but do not forget that you pay much more for the house for more than thirty years ago, when you are more than fifteen.

Martin Lukac represents RateTake refinancing loan marketplace. RateTake hit consumers with multiple lenders offering low prices. Do you have too much debt? Get assistance and debt relief you will be amazed at what we can do together.