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Saving Without Refinancing

05/15/24

Refinancing your mortgage can save you money, but paying one extra mortgage payment every year can, too. By applying the extra payment to principal, the balance of your mortgage drops and future interest is calculated on the lower amount – every month for the remainder of your loan.

Say you have a 30-year, 3%, fixed rate mortgage of $200,000. Your payment is approximately $843 a month. If you make one extra payment every year, you could save more than $14,000 in interest and reduce the term of your mortgage by nearly four years.

If you can’t come up with an extra payment all at once, remember you can also make additional principal payments – of whatever amount you can afford – whenever you like.

Personal – Saving, Planning & Budgeting

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This article contains general information only. Sunflower Bank is not, by means of this article, rendering accounting, financial, investment, legal, tax, or other professional advice or services. This article is not a substitute for such professional advice or services, before making any decisions related to these matters, you should consult a qualified professional advisor.