Paying every month you are reducing the principal by that amount. Paying it off later, in one lump sum, you are accruing interest in the mean time on the remaining principal. Remember, you are accusing interest on the remaining principal, DAILY. So the ideal case would be being able to make a payment Daily, but your mortgage lender doesn't want that because their interest revenue would be smaller.
That extra $100/month towards principle is the equivalent of making one extra mortgage payment a year.
Is it worth it paying principles if you dont plan to live in the house for the 30 years?
Depends. But generally the best course of action would be to invest the money in the s&p 500.
What’s the difference of paying extra per month and saving to pay it in full?
Paying every month you are reducing the principal by that amount. Paying it off later, in one lump sum, you are accruing interest in the mean time on the remaining principal. Remember, you are accusing interest on the remaining principal, DAILY. So the ideal case would be being able to make a payment Daily, but your mortgage lender doesn't want that because their interest revenue would be smaller.
I cant follow what he said. I like ro make thing easy. If my mortgage is 1200 per month. I cant pay bi weekly. Then i pay 2400 per month?
1200/12=100+1200=1300 per month
He should have said one extra payment per year not per month... 100×12 = 1200 which is one extra payment for the year
I pay 2,239.14 How much do I pay extra . I did the math it was $185 dollars is this accurate?
Close enough. Round it to $186.