Mortgage Amortization Schedule - More Than A Yawn

The Excitement Of Mortgage Freedom

Can you imagine how it would feel waking up one morning to mortgage freedom?

Lately I've been thinking what if homeowners did not feel enslaved by their home mortgage? Instead, what if they were more in control of their financial destiny.

In fact, what if you could start today to pay off your house and save money at the same time?

But in order to reach mortgage freedom, you need an easy method for tracking your home loan balance. And that's why an amortization schedule is the focus of this article.

What Is A Mortgage Amortization Schedule

A mortgage amortization schedule is a helpful tool to keep you in tune with your loan balance by tracking three activities.

• By what amount is the loan balance decreased by your monthly payment
• How much interest do you pay on a monthly basis
• What is the ending mortgage balance each month

How Mortgage Amortization Works

The majority of mortgages are 30 year loans. So in the early years, the greatest portion of the house payment is applied to interest. Very little principal is reduced.

This means, in spite of making monthly house payments, you continue to owe for several years almost as much as you originally borrowed.

But you do not have to settle for this. In fact, I am going to show you how to pay off your mortgage early while simultaneously saving a sizable amount of money.

The Promise Of Mortgage Freedom

By increasing the amount you pay toward principal, you can pay off your mortgage early. And because you understand the basics of an amortization schedule, you are ready to take charge of your mortgage destiny.

Now here are some exciting facts for you.

If you finance $200,000 for 30 years at 6%, by applying just $100 more a month to your payment, you knock almost five and a half years off your loan. That's not all. You also save about $49,000 in interest payments.

But let's not stop there. By increasing the payment with an additional $100 monthly, your mortgage freedom will arrive nine years early. And a whopping total of $79,800 in interest payments can be avoided.

What Plans Will You Make With $79,800

Now I can't be sure about you, but most everyone I speak to could put $79,800 to good use. In fact, you probably have some ideas already today.

So start dreaming about your amortization schedule. How does the promise of mortgage freedom make you feel?

I'm guessing excited!

This information is made available to you as a self-help tool and is not intended to provide investment advice. All numbers are estimated and are for illustrative purposes. You are encouraged to seek personalized advice from qualified professionals regarding all personal finance issues.

Article No.134 by Kate Ford, real estate insider and author of Ask Kate. If you enjoyed this article, you will like our Free Home Buyer Checklist - Simplify Buying A Home also.