When it comes to a home mortgage loan, you can actually pay off the loan much more quickly and save a great deal of money by simply paying a little extra each month.
If you take out a 30 year loan for $250,000.00 with a 4.000% interest rate, for example, your monthly payment (interest and principal only) will be $1,193.54. By the time the 30 year time period is complete, you will have paid $429,669.80 for your home.
If you pay just $50.00 more each month, you will pay only $414,435.74 toward your home. This is a savings of $15,234.06. In addition, you will get the loan paid off 2 Years 1 Months sooner than if you paid only your regular monthly payment.