For those who still have mortages, as you know after dancing I went into selling, and then 18 years in Real Estate. My advise I would always give to my clients,was to find out on what date the Banks calculated your Interest, on your outstanding mortage amount. It may work differently in The States.Say they calculate your interest on the very last day of the month, and:-
Assuming, you have a mortgate of $40,000.00 (Forty Thousand Dollars) and you pay $2000 a month on your mortgage (I don't know the % of your Mortgage rates in the States). They will calculate your interest on $40,000.00 (Forty Thousand Dollars). BUT, if you can pay that $2000, on the day BEFORE they calculate your Interested Rates, they will then only be calculating interesT on $38,000.00 (Thirty Eight thousand). If you sit down, and calulate this, over you entire Mortgage period, which is usually 20 or 25 years, you will be amazed at how many thousands you have saved at the end of the term. You will have calculate.
2007-10-28
18:34:41
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9 answers
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Senior Citizens