mortgage calculator for 40 year

Have you ever been on mortgage cycling? Perhaps you've seen the ads for books on this" secret technique "for paying your mortgage sooner. Is there some useful information in them? Yes, especially if you are not familiar with the principle that you pay extra principle every year, and you pay the loan sooner and save thousands on interest.

Mortgage cycling is dressed as a "new" system, and of course there are many little tricks, so most effectively. There are several techniques too risky, such as with short-term home-equity loan to pay your primary mortgage now. The latter technique could cost you more in interest, or even that you run into financial difficulties which in the direction of foreclosure.

The safest way of "Mortgage Cycling" "is only the large lump sums of money on your mortgage loan every few months to one year. Figures of thousands of dollars per year, and you pay your loan many years sooner. No wonder the right, but what if you do not have the hundreds of dollars a month extra needed to do this?

Money for Mortgage Cycling

Do not assume you can not with some additional funding, at least annually. Some will say they can not, and still hundreds of dollars per month on credit card payments from the purchase of more expensive shoes to snowmobiles. There is nothing wrong with buying these things, but the choice is yours if you want the mortgage instead.

You can also from part of the great principle, by making your annual tax refunds, insurance payments, which are not otherwise allocated, and cash gifts or prizes can be achieved.

How much faster can your mortgage depends on how much extra you pay and when. The earlier you pay money to the principle, the better. Let us show with a simple example, just one extra payment per month.

Suppose you have a $ 160.000 30-year mortgage at a 7% interest rate. Regular monthly payments would be $ 1064.40. If you are with your second payment you will see that there is interest of $ 932.57 and $ 131.83 principle (the amount you actually pay the loan). Just add $ 131.83 to your normal payment of $ 1064.40 and you have one month prior to the time it will pay off your mortgage.

If you use this every month, you would be the time to pay your loan in half. The principle of payment increases with each payment, so that the additional payment would be a little more per month (about $ 137 to the end of the first year), but hopefully over the years your income will rise enough to afford. Consider that if you normally pay your last year of the mortgage, you pay $ 12,772.80 ($ 1064.40 x 12 months). On the other hand, pay an additional $ 1600 that first year in style, as shown above, and you eliminate that total last year - a saving of more than $ 11,000!

Other ways to pay off extra principle need to be carefully evaluated. You could, for example, a few thousand of your savings for the loan now and save perhaps tens of thousands in interest over the years. However, you will then need to pay even higher prices emptied credit card because you need your savings account and money? You can cash in shares and the money to the loan, but you will be equipped with a 9% return to pay a 7% mortgage? You can also consider paying off any debts with higher interest rates before you money on your mortgage.

To put it simply, raised extra money every month on the loan. Then use all the other money that would otherwise be wasted (eg, tax refunds). If you have only a few simple things to pay something extra on the loan each year, and you can forget about complicated mortgage cycling plans.

Steve Gillman is investing in real estate for years. To learn more, get a free real estate investing course, and you see a photo of a beautiful house he and his wife bought for $ 17,500, visit http://www.HousesUnderFiftyThousand.com