When you look at your bank statement at the end of each month, does it seem like 90% of your payment goes to interest? Well, for the first five years of the loan, it does. Only about 10% of your payment actually goes to reducing
Dramatically reduce the interest you pay!
the loan amount during those early years.
It’s good news that you still can deduct the interest that you pay on the loan on your taxes. Still, you can accelerate the pay off of your property substantially by either sending an extra hundred dollars in with your monthly payment, or just make an extra payment each year.
You can decrease a 30 year mortgage to approximately 21 years, simply by making one extra payment each year! You’ll save thousands of dollars in the interest you pay on the loan.
Try it, you’ll see your personal net worth start to increase steadily. Some people even think it’s fun watching their loan balance decrease each month!