If you buy a house this year with a 30-year mortgage standard, you’ll pay your last payment in 2042. If you want to celebrate the day you’ll pay off your mortgage before 30 years end. Do not be confused how you should take care of equity release because we will give tips equity release. Pay 10% more than your monthly mortgage payments and you can cut five years earlier than the loan period, depending on the interest rate, 20% will cut the nine years! Even 5%, just $ 50 more than a $ 1000 monthly mortgage payment, will cut three years from the loan term. (The higher the interest rate, the more the impact is perceived by paying a little more each month).
Remember that paying a mortgage is equivalent to saving money in a bank, only you get a higher interest rate. Of course, the equity money you save, it’s harder to get rid of. But that’s actually a very good thing! If you pay every two weeks, you pay 26 times a year and there are only 12 mortgage payments. If you pay one additional mortgage payment annually, the result is the same as the number 1 above. You can cut more than ten years from your mortgage period.