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Show Notes:
When do you pre-pay?
Why do you pre-pay?
How do you pre-pay?
Example:
$100,000, 30 year loan
3.5% interest, $450/mo payment
$61,000 interest paid
You pay back $100k PLUS $61k.
That’s not a 3.5% interest rate.
That’s a 61% interest rate.
It’s only a 3.5% interest rate if you pay back the entire balance borrowed $100k in the first year.
The below numbers are approximate:
$100 month difference
Turn 30 yr loan into a 21.5 year loan
8.5 years saved
$18,800 interest saved.
$200 month difference
30 into a 17 yr loan
13 years saved
$28,600 interest saved
$300 month difference
30 into 15 yr loan
15.8 years saved
$34,700 int saved
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