Shave years off your mortgage
Whether you are buying your first home, or have been making mortgage payments for years, you may be thinking about reducing this obligation, faster. In fact, changing your term, the payment amount and even making lump sum payments could pay down your mortgage more quickly.
Reduce the amortization period
The amortization period is the length over which the debt is carried. By reducing this time period, from 25 years to 15 years, you will save thousands in interest. The following chart shows these savings.
Interest rate |
*Monthly payment |
*Monthly payment |
difference |
interest |
(per annum) |
15-year |
25-year |
|
savings |