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Home Ownership Preparation :: Amortization Chart Free
Amortization Chart Free:
How A Free Amortization Chart Can Save You Thousands on Your Mortgage
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“Amortization Chart, Free!” "SLASH THOUSANDS OF DOLLARS OFF YOUR INTEREST PAYMENTS!" These appeals are similar to many I've seen recently.
They always have boldfaced, capital-letters screaming at you about free charts and ways to save on your mortgage. What they don’t tell you is that anyone can do it and you don’t have to pay exorbitant fees.
To learn more, keep reading.
You Can Do it Yourself
- Yes, you can prepay your mortgage.
- Yes, you can slash thousands of dollars off your interest payments.
- Yes, you can do it yourself.
- No, you don't have to pay anybody $395 or $249 or even $2.49.
Every time you write your mortgage check, just add $25, or $50 or $100 (or whatever amount you choose) to the amount due.
Make sure to write on the payment coupon, or in a separate note, that you want this additional amount credited toward your principal.
For example, let's say you have an $85,000 mortgage with an 8 percent interest rate.
If you prepaid $50 in principal each month, you would save $38,008 and cut 83 months off the term of the mortgage. If you sent $100 extra each month, you would save $58,116 and cut the term by 130 months.
There are no tricks to this. No special knowledge or amortization chart, free or otherwise, is needed.
The right way to make a prepayment is simply this: You must inform the lender that you want the additional payment applied to principal. That's the only requirement.
How Biweekly Plans Help You Do it Faster
Biweekly plans are simply a fancy way of prepaying your mortgage and an example of how put an amortization chart (free from your bank) to work for you.
Essentially, a biweekly system involves paying one extra mortgage payment a year.
For example, the lender agrees (for the $395 fee) to allow me to pay half my monthly mortgage payment every two weeks. That adds up to 26 half payments a year, or 13 full payments.
Couldn't I just send in an extra payment each year - or divide the payment by 12 and pay that amount extra each month - and forget about paying the $395?
Yes, you have the right to prepay a mortgage in any way you like, at no extra cost.
Instead, the companies hawking biweekly mortgages or prepayment schemes are charging exorbitant fees for something you can do yourself at no cost.
How These Supposed “Mortgage Savers” Can Trick You
These mortgage saver companies might include a customized amortization chart free, payment coupons and other tricks to try to convince you that you need them. The truth is, you can do it yourself! And for free!
See also:
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Home-Ownership-Preparation.com :: Amortization Chart Free