@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 ~7-8%), you’d end up paying MORE in interest than the total value of your loan over 30 years. For example: on a $380,000 mortgage at a 7% interest rate, you’d pay $530,000 in INTEREST over your 30 years of mortgage payments (if you never refinanced your mortgage & simply made every payment on time). Your required monthly payment on this $380k mortgage would be $2,500. If you instead paid $1,250 BIWEEKLY (every two weeks), your total interest paid would drop to $396,000 (savings of $134k), 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. HOWEVER: some mortgage lenders don't let you do this, so be sure you check with your lender. #learnontiktok #moneytok #PersonalFinance #mortgage #homebuying

Nick Meyer, CFP® | NOT ADVICE

Open In TikTok:

Region: US

Monday 17 June 2024 23:43:53 GMT