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If you pay even more toward the principal each year, you can easily get your 30-year mortgage down to 15 years—and you’ll be able to drop PMI (private mortgage insurance) costs much earlier.
The Dave Ramsey mortgage plan encourages homeowners to aggressively pay off their mortgages early, however. One recommendation Ramsey makes is to convert your 30-year mortgage into a fixed-rate ...
For example, by paying an extra $10 per month on a $220,000, 30-year loan at 4% interest, you can pay off your mortgage loan six months earlier and save $3,276.86 in interest.
On a 30-year term, you’d normally pay $1,146 per month, but with the 10/15 rule that amount would be $1,643 across 16 years and nine months, saving you $83,000 in the process.
Paying off a car loan early can save you money — provided the lender doesn’t assess too large a prepayment penalty and you don’t have other high-interest debt. Even a few extra payments can ...
Bowen suggests maintaining a cushion that protects you for at least six months before you consider using a large portion of your liquid assets to pay off your mortgage early. 3.
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