Ditto!Another alternative for those who already have a mortgage is to "invest in equity" by contributing savings toward paying down the mortgage faster.
Another point people seem to often forget and banks never seem to mention is the cost of your home is what you paid for it PLUS the interest you pay for it. So for a simple example:Ditto!
The only way to truly save, is by paying off your debts as quickly as possible & as Elbyron has pointed out, where you could save the most money in the long term, is by accelerating your mortgage payments (assuming you're in this position).
Totally agree. However, that would eliminate more than 75% of home-owners.When it comes to selling time, you need to factor in your interest paid as well as purchase cost (minus sales expenses) to truly figure out if you are making money on the sale or not.
That is exactly right and the point I tried to illustrate with the example included in the link. Banks will mention this fact in passing, but won't spend much time trying to convince you of how much more you would be saving by paying even a little extra, so here again is the savings example:So pay your mortgage down as fast as you can, by using bi-weekly, by paying a yearly lump sum like some banks allow, by increasing your monthly payment, what ever you can do, do it.
It also works wonders if you're able to squeeze into a home that's in a lower price range. Having that freedom and making that last payment is a great feeling.$270,000.00 mortgage 25 year 5 term 4% payed weekly.
So you made 135% on your money. Find that return any were else.
Notice how you pay a little more principal off and a little less interest each pmt.