Everyone gets them when they buy a new home – the inundation of marketing that comes in the mail touting their bimonthly or biweekly plans to pay off your mortgage faster than the term of 30 or 15 years. While paying off your mortgage early is always a good thing, simple math will help you determine if the plans marketed to you will actually help you reduce your term significantly. The article below describes each “plan” and then suggests a very simple alternative that will make you go “Aha!”
To simplify it even more, just make one extra full payment each year – 13, instead of 12. On that 13th payment though, be sure to make it clear you want it applied to the principal only.
David R. Madaffari, Realtor
Keller Williams Realty – First Choice
Cell: 225.772.3283 (DAVE)
37325 Market Place Dr. Ste D
Prairieville, LA 70769
Each office independently owned and operated