Stock, bonds, annuities, and Mutual fundsthose are the terms associated with investing. Have you considered that you may want to safely invest in your mortgage? "My Mortgage?", you may say. Yes... your mortgage. Home owners who have a residential mortgage don't think about investing a little bit extra in that mortgage. You may be saying to yourself, "How can a person invest in their home mortgage?". It's actually quite simple. For simplicity's sake let's take a mortgage balance of $150,000 for a payment duration of 30 years with 6.5% annual percent rate (APR). If you make the monthly payment on your billing statement, you'll be paying $948.10 per month (not including mortgage insurance (PMI) and/or property taxes). Multiply the monthly home mortgage payment by 30 years of payments (360 monthly payments) and you would be paying close to $341,316.73 over the duration of the home loan ($948.10 x 360). That's $191,316.73 extra in mortgage interest. How about putting an extra $50 per month towards that mortgage. You'll shave off approximately 48 months of payments and be saving (or earning) $30,749.80. That's your mortgage investment! If you're curious about different payment scenarios and how they figure, you can use this helpful mortgage calculator that compares up to 4 different payment scenarios.
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