Paying off your mortgage a little quicker in Utah
First you have to understand that the bank is making a fortune off of you. Now days they are offering a 40 or 50 year mortgages. This is not necessarily for your convenience, they are not doing you any favors, They are trying to make money off of you. A typical home here in Utah costs around $200,000 . Lets say you buy this new house with a forty year mortgage loan term at a 6.5% (The current interest rate for Utah), If you pay your monthly minimum of $1,170 for forty years, you will have paid somewhere around $562,000 dollars for your house. That means the bank pocketed around $350,000. The story even gets worse with a sub-prime loan. Lets say you buy that same 200,000 house but you don't have the greatest credit so you only qualify for a 9% sub-prime rate. At the end of the forty years, you will have paid the bank a total of $740,500 for the house. Thats a whole lot of cash. You could have almost bought 4 of the same house by the time you are done paying off that mortgage.
The truth is that now days most people know this disturbing fact about home mortgage loans, but very few actually take steps to do anything about it. Especially here in Utah. The main reason why nobody does anything about this I assume is because they believe they can not afford to pay any more each month. The reality is you cant afford NOT to pay off a little more of your loan. In the end if you just add a small sum to your mortgage payment each month, you will save yourself a fortune in interest over the years. Take a look at the examples below using that same $200,000 loan as above with 6.5% interests.
| Loan Amount |
Intrest Rate |
Monthly Payment |
Term Length |
Total Interest Paid |
| $200,000 |
6.5% |
$1,170 |
40 years |
$361,600 |
| $200,000 |
6.5% |
$1,264 |
30 years |
$255,088 |
| $200,000 |
6.5% |
$1,491 |
20 years |
$157,875 |
| $200,000 |
6.5% |
$1,742 |
15 years |
$113,598 |
Glance over that chart and hopefully it will add a little perspective. If you can just muster up even only 100 extra dollars a month you could save yourself thousands on your new Utah home a be free of your mortgage years earlier. Would you like to see how much you could save yourself by paying a little extra each month? Use the calculator below to find out.
|
Save on Utah Mortgages