UNDERSTANDING MORTGAGE TIMING: WHEN EXTRA PAYMENTS REALLY COUNT скачать в хорошем качестве

UNDERSTANDING MORTGAGE TIMING: WHEN EXTRA PAYMENTS REALLY COUNT

A lot of people focus on the payment amount, but very few stop to ask how those payments actually work behind the scenes. When you understand how interest is calculated and how timing affects your loan balance, you start to see opportunities most borrowers completely miss. That’s why questions about how much to pay, and when to pay it, are incredibly important. Now here’s where it gets interesting. If instead of paying that principal gradually over 12 months (about $348-$368 per month), you had the ability to apply about $4,298 toward principal upfront, you would effectively move ahead on the amortization schedule. Instead of paying roughly $20,883 in interest over that year, you could reach the same equity position with only about one month of interest (~$1,700). That means a potential interest avoidance of roughly $20,000 simply by how and when principal is applied. After that principal reduction, the remaining balance drops to about $345,701.93. Interest is then recalculated monthly using the standard formula: interest rate ÷ 12 × remaining balance. At 6%, that’s 0.005 × $345,701.93 = $1,728.51 for the next interest portion. The key takeaway isn’t just paying extra, it’s understanding how amortization works so you can minimize interest cost and build equity faster without necessarily refinancing or increasing income. Get a FREE Savings & Earnings Report! https://bit.ly/3QqmPx5 Watch & Subscribe to the PILL Method Youtube Channel! https://bit.ly/4aRITIy #Dondaniel #PILLmethod #InterestCancellation #PayOffYourMortgage3to5years #PayOffStudentLoansFaster #ABetterWayToEliminateDebt #OptimizedBudgeting #vanntastic #christievan #MortgageEducation