Homestead Financial Mortgage

You Pay Your Bills Responsibly, Now Let’s Pay them Back Strategically

“For the cost of a cable bill applied to your mortgage, you can shave as much at 7 years off an average 30 year mortgage.”

What does that mean? 

Let’s take an average mortgage in the Midwest. $200,000 at 4.25% for 30 years, with a principal and interest payment of 983.88. Now, we’re going to add the amount of a reasonable cable bill to the payment of 150. This brings our total principal and interest payment to $1,133.

Standard Payment Payment with the Extra $150
Rate 4.25% 4.25%
P&I $983.88 $1,133.88
Taxes and Insurance $275.00 $275.00
Total $1,258.88 $1,408.88
Term of the loan 30 years 23.10 Years
Total Payback $354,196 $314,311.56
Savings N/A 39,884.46

 

So using the above example, by just adding an extra $150 to a $200,000 mortgage payment you can save nearly $40,000 off of your mortgage, paying it off 7 years earlier.

*$200,000 loan amount 360 amortization APR 4.283%

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