mortgage payoff incentives.notebook January 13, 2016

Mortgage Payoff Incentives

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mortgage payoff incentives.notebook January 13, 2016

Define Mortgage

Home Loan payments that include...

the mortgage loan amount to be repaid

Interest

cost lenders charge for use of the money

Principal

Define Escrow Payments

The total cost of a mortgage

your overall mortgage monthly payment

that include...

Taxes

local property and government tax assessments

Insurance

home replacement in the event of a disaster

mortgage payoff incentives.notebook January 13, 2016

Escrow Payments example

http://www.mortgage-calc.com/mortgage/

howmucharemypayments.html?MSA

mortgage payoff incentives.notebook January 13, 2016

Escrow Payments example

$1,000 EVERY MONTH

(12 PAYMENTS PER YEAR)

$12,000 IN ONE YEAR

Is there any difference in Paying $500 every two weeks

vs. $1,000 every month?

mortgage payoff incentives.notebook January 13, 2016

Paying $500 every two weeks vs. $1,000 every month...

How many weeks in a month?

4 (weeks) x 12 (months) =

How many weeks in a year?

payments per year

mortgage payoff incentives.notebook January 13, 2016

By paying every two weeks on your loan you will be

Accelerating your mortgage payoff

paying an extra month of payments (13)

Saving thousands of dollars in interest

vs

mortgage payoff incentives.notebook January 13, 2016

economic want

Opportunity Cost

Define Opportunity Cost...

What would the opportunity cost be of paying $25 extra on my monthly Mortgage Payment?

extra on my monthly Mortgage Payment what are some things I would have to give up?

What would the opportunity cost be of paying $50 extra on my monthly Mortgage Payment?

What would the opportunity cost be of paying $75 extra on my monthly Mortgage Payment?

What would the opportunity cost be of paying $100 extra on my monthly Mortgage Payment?

mortgage payoff incentives.notebook January 13, 2016

What would be the impact of me paying a little extra each month on my mortgage?

$25, $50, $75, or even $100

mortgage payoff incentives.notebook January 13, 2016

What would be the impact of me paying a little extra each month on my mortgage?

$25, $50, $75, or even $100

mortgage payoff incentives.notebook January 13, 2016

What would be the impact of me paying a little extra each month on my mortgage?

$25, $50, $75, or even $100

mortgage payoff incentives.notebook January 13, 2016

What would be the impact of me paying a little extra each month on my mortgage?

$25, $50, $75, or even $100

mortgage payoff incentives.notebook January 13, 2016

Click on the link below

"Paying Extra & Bi-weekly Mortgage Calculator Savings"

read this page on my web site and follow the directions...

http://www.trschools.k12.wi.us/faculty/LFEEST/Home%20~%20Paying%20Extra%20-

%20Biweekly%20Payments%20Savings.pdf