Early Payoff Hack: Round Up The Payment
Mortgage Hack #4
A borrower can reduce the length of the loan's term and save on interest by increasing the monthly payment to a round number. The degree of rounding will determine the precise amount of money and time saved.
Example: A $3,160 monthly payment would be rounded up to $3,200 each month, saving $32,483 in interest and cutting the loan's term by about two years.
Use the Following Terms:
Mortgage Term – 30-year Interest Rate – 7%
Loan Amount - $475,000 Monthly Payment - $3,160
Reference: 2022 Keller Mortgage LLC