Paying off a mortgage is an overwhelming task.
A mortgage is a big debt—almost as big as your house—so the best most of us can hope to do is to shorten the term by prepaying as much of the loan that we can as quickly as we’re able.
Why should we want to do that?
Owning your home free and clear is a good place to be. You’re living in your home with no mortgage payment and that’s when saving money and life in general get easier.
But there’s something more.
The cumulative interest on mortgage loans makes your loan balance even bigger.
A mortgage of $200,000 will require nearly $350,000 in monthly payments over a 30 year period. Anything you can do to shorten the term can save a lot of money.
What is Mortgage Amortization?
[Read more…] about What is Mortgage Amortization and How Does it Work?