“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|
|Taxes and Insurance||$275.00||$275.00|
|Term of the loan||30 years||23.10 Years|
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%