How much is your interest rate?
99% of the population have been taught that the lower the rate is the more you can save.
I’ll show you in this article that there are more important factors to a home loan than just interest
rate.
This is one way you can...
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How much is your interest rate?
99% of the population have been taught that the lower the rate is the more you can save.
I’ll show you in this article that there are more important factors to a home loan than just interest
rate.
This is one way you can save on your interest cost:
In the first 5-7 years of the life of a home loan the interest component is approximately 90% of cost
of the loan in many cases.
This means that every dollar you are paying towards the loan, 90 cents is
being charged towards interest costs.
It is even worse in the first 2 years; with a $300,000 @ 8% you will pay over $52,500 of interest, only
to have just $5,000 of Principal Reduction.
In the same example with the addition of a monthly $12 fee, you will pay over $53,200 of interest,
$240 in account fees and have a Principal Reduction of less than $4,300.
The difference of the fee is nearly 12% loss in Principal Reduction alone.
To pay off you home loan faster you need to have a good debt management stra
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