Paying off your mortgage early may be a consideration

It can save you money if you pay extra on your mortgage every month. This example uses a $100,000 loan at a 5.25% interest rate.

This file was created using Lotus 1-2-3 on 11/12/2010 at 11:36:54 AM

Annual Loan Payments  $6,626.40

Monthly Payments  $552.20

Interest in First Calendar Year  $5,216.39

Interest Over Term of Loan  $98,792.00

Sum of All Payments  $198,792.00

Paying about $50 more a month will pay your loan off in 25 years and save you $19,000 in interest.

Annual Loan Payments $7,191.00
Monthly Payments $599.25
Interest in First Calendar Year $5,202.60
...Interest Over Term of Loan $79,775.00
Sum of All Payments $179,775.00

Paying about $120 a month more will pay your loan off in 20 years and save you about $37,000 in interest.

Annual Loan Payments $8,086.08
Monthly Payments $673.84
Interest in First Calendar Year $5,180.75
Interest Over Term of Loan $61,721.60
Sum of All Payments $161,721.60