@nicktalksmoney: Easy trick to save THOUSANDS on your mortgage🤑 Mortgages, which are loans you take out to buy a house, require that you make monthly payments of a set amount until your mortgage is fully paid off (usually 30 years). This certainly ISN’T free money: at today’s interest rates (currently ~6.7%), you’d end up paying MORE in interest than the total value of your loan over 30 years. For example: on a $400,000 mortgage at a 6.7% interest rate, you’d pay $529,000 in INTEREST over your 30 years of mortgage payments. Your required monthly payment on this $400k mortgage would be $2,500. If you instead paid $1,250 BIWEEKLY (every two weeks), your total interest paid would drop to $399,790 (savings of over $100k), you’d pay off your mortgage 6 years early, and, most importantly, you’d make your full required mortgage payment every month. How this works: instead of making 12 payments a year paying monthly, you’d make 13 full payments per year (52 weeks / 2 = 26 weeks of half payments ($1,250) / 2 = 13 weeks of full payments ($2,500)) by paying $1,250 every 2 weeks. Turns out, an extra payment every year for 20+ years can make a HUGE difference. Appreciate you! -Nick #moneytok #PersonalFinance #lifehacks #LearnOnTikTok #homebuying

Nick Meyer, CFP® | NOT ADVICE

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Tuesday 05 March 2024 00:36:51 GMT