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News: President's Columns: Resolve to Prepay Your Mortgage...Resolve to Prepay Your Mortgage By __________________________ Board President's Name Here If you've already refinanced your home but made it a point to find other ways to save money, here's another real estate-related financial windfall: Send your mortgage company the equivalent of one additional mortgage payment each year. Just that small investment could shave thousands of dollars in interest payments from your total mortgage cost, leaving you that money to invest or spend on your kids' education or your own vacations. How much would you save? On a 30-year, fixed-rate $85,000 loan at 7.5 percent interest, you'd end up paying $180,280 in total payments, a $33,679 savings compared with the normal payment total of $213,959. And not only would you save money, but you'd be building equity and paying off your loan much more quickly--in slightly over 23 years rather than the scheduled 30 years. Wouldn't the extra payment be a little painful, you ask? Not if you spread it out over 12 months. The normal payment on the aforementioned loan would be $594.33 monthly. Divide that payment by 12 and you arrive at $49.53 that has to be added to each monthly payment in order to pay the equivalent of one extra payment each year. Not to mention the "investment potential" you gain by prepaying your mortgage. If you've ever contemplated buying or selling a home, or prepaying your mortgage, now's the time to do it! For help in making the decision to buy, sell or prepay, contact one of the ______ (# of members here) members of the _____________ (Board/Association of REALTORS). He or she will be glad to help and you'll be all the more prosperous for making this year's wisest real estate investment.
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