Loans and mortgages – A little prepayment goes a long way

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Make an extra monthly payment on your mortgage every year, and you’ll save thousands of dollars in interest. Just add a little to you check each month. Over the course of the year, it will add up to an entire extra payment.

For example, suppose you have 25 years left on a fixed-rate 30-year mortgage of $200,000 at 7-percent interest. If you add just $150 to your $1,300 monthly payment, you’ll finish paying your mortgage more than five years early. Plus, you’ll save almost $55,000 in interest over the course of the loan.

To find out how much you can save, visit www.myfico.com, and click on Credit Education. In the Calculators section, the Mortgage Payoff Calculator will figure exactly how much time and money you’ll save by prepaying.



All the best,



Timben