All loans based on 100,000 at 6.50% fixed for 30 yrs. That’s a fairly small mortgage loan in today’s world, so realize, the bigger the loan, the more savings in interest there will be!
1) I’ll start off with the simple method to save money by not spending any extra money of your own and saving $400.00 because it’s the easiest savings plan there is!
Let’s say your monthly mortgage payment is $1000/month for round figures. If you pay the same amount 4 times a month ($250.00 four times) instead of 1000 at the end of the month you’ll save roughly .50/month = 400.00 for the entire mortgage loan. That’s not doing anything at all! Just pay your monthly mortgage weekly instead of monthly, but don’t pay the extra week when there’s a 5 week month or you will be paying an extra $250.00 four times a year. This method simply gets the money to the bank faster which means you don’t pay interest for as long. There’s no reason not to save that money!
2) Take a look at your calendar and you’ll realize if you pay the $250.00 per week instead of $1000.00 per month you will end up making an extra 4 payments of $250.00 by paying weekly. 1000 x 12 = $12,000 vs. 250 x 52 weeks = $13,000. By making those few extra payments per year you will save $40,000.00 on your mortgage! There’s big savings available when dissecting your mortgage payment and I‘m going to prove it right now for free!
3) Sell a little bit of junk that you have lying around the house once a month. Even if you manage to scrounge up $20.00 worth, you can put that toward your monthly mortgage and save over 13,000 over the course of the loan!! Even a small amount of $10.00 per month will save you over $7,000.00!!! When all it takes is a simple 10 dollar bill per month to save $7,000.00 you start to really save those pennies!
4) Speaking of pennies, don’t forget the oldest trick in the book to save money – saving your change! Save it in a jar and come up with another $10.00 per month and save ANOTHER $7,000.00 on your mortgage! Keep your eyes open walking through stores, or down the street for change. Come up with an extra dollar per month and save $745.00! How many ways can you think of to save $1.00 per month to put toward your mortgage?
There’s been a lot of numbers given out so far so here’s the easy thing to remember…$10.00/month = $7,000.00 on a $100,000.00 mortgage loan over 30 yrs. However it doesn’t increase that rapidly, meaning every $10.00 isn’t “another” $7,000.00. In fact, 100.00 = $45,000.00, so I’ll keep throwing out these numbers for you to realize how easy it is to save thousands!!
5) Here’s an easy one! Work ONE extra hour per week doing whatever you can. If you’re allowed to at your current job then do that. If not, find something some thing else, such as asking your friend to clean out their basement or garage for an hour or two at 10-15 dollars per hour. If you make $10/hr for 1 hour, once a week minus taxes you will end up with roughly 7/wk – times 4 weeks = $28.00 toward your monthly mortgage per month and it’s a savings of $17,500.00!! If you can only manage to work 1 extra hour per month and receive $7.00 it will still save you $5,000.00 on your mortgage!
6) So, get up!! Do something! Move around! Skip that coffee every other morning at $1.00 each…Let’s say you can skip 15/month!! You know it, that’s a savings of over $10,000.00!! Thinking of any ideas on your own yet? Skip 3 packs of cigarettes per month! There’s another 10,000.00 in savings!
7) This list can go on and on! You just need to think of you money differently. Here’s an example; Every week you buy a gallon of milk at roughly $4.00. Let’s say you come across a coupon for $1.00 off a gallon of milk. Chances are you’ll skip over it or even throw it away. Well what if the coupon said, Save $745.00 on that gallon of milk??? It might catch your eye then, right? Here’s the math…$1.00 per month toward your mortgage is $745.00 off of your loan!! So find a $1.00 coupon once a month and save $745.00 by putting that extra dollar toward your mortgage! Maybe you’ll start seeing coupons as hundred dollar bills like I do!!
To everyone involved in the bar seen buying a beer for $3.00 each (usually more); that’s $2,300.00 off your mortgage if you paid down $3.00/month! This isn’t meant for you to cancel all the fun out of your life, but simply pick a few things that you can do every month and put a few extra dollars toward your mortgage….You’ll save thousands!! That’s why I haven’t told you to cut ALL of the cigarettes or ALL the coffee out of your life because you might not want to. However, a few little things can add up to a lot when talking about a 30 yr mortgage!
There are a bunch of ways to save money and this one of the best in my eyes. Putting money into your mortgage is like a double savings plan. In a 30 year mortgage there is 360 total payments. Meaning, if you put $1.00 toward your mortgage every month it would be a total of $360.00. But the savings on interest adds in and you end up saving $745.00! No one cares about putting an extra $1.00 bill into their savings account, but when you see it as a bigger picture you start to realize how important every dollar is.
If you come up with any new ideas to add to my list please email them to me and I’ll add them to the list! Help everyone save some money on that monthly mortgage payment!