9 May 2011
In case of a typical scenario without extra payments such borrower will pay about $177,458 in interest over 30 years.
And increasing the monthly mortgage payment each year by $24 will save the borrower’s a lot of money. During the first year the borrower will pay $1,187 each month. Then – $1,211, $1,235, $1,260 and so on. In the end, it will help to pay off the mortgage 8 years earlier. Moreover, it will save borrower approx $42,000 in interest!
It should be noted that it’s just an example of a hypothetical situation. In order to see how profitable it will be in your case, please, consult a mortgage professional.