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Shorten the length of your loan! Save on interest!

Cut small, unnecessary costs from your daily routine and apply the savings towards your mortgage payments. This will not only shorten the time you’re stuck paying off your loan, but it will save you thousands of dollars in interest! Pay your mortgage faster to save time and money!

Pay Your Mortgage Faster Save Time Money

First, it’s important to clarify the mortgage assumptions for this infographic. We’ve selected an average priced home with pretty standard interest rate (although for the next few months you can easily find a lower interest rate). We went with a 30-year fixed rate loan, since that’s the standard for homeowners.

$200,000 Mortgage
30 Year Fixed Rate Loan
4.5% Interest Rate

Standard Monthly Payment = $1,013.17

All calculations below are based on these figures. 

If you cut one monthly movie date, you save $30 per month. If you apply that towards your mortgage payment each month, you will trim 1 year 9 months off the length of the loan. You save $11,138 worth of interest.

If you cut out your daily coffee, you save $40 per month. If you apply that towards your mortgage payment, you will trim 2 years 3 months off the length of the loan. You save $14,496 worth of interest.

If you cut out your gym membership and just work out outside instead, you save $55 per month. If you apply that towards your mortgage payment, you will trim 3 years off the length of the loan. You save $19,247 worth of interest.

If you cut dinner out at a restaurant with the family just once a month, you save $80 per month. If you apply that towards your mortgage payment, you will trim 4 years 2 months off the length of the loan. You save $26,486 worth of interest.

If you cut out that daily latte, you save $100 per month. If you apply that towards your mortgage payment each month, you will trim 5 years off the length of the loan. You save $31,746 worth of interest.

If you cut out those fast food lunches, you save $150 per month. If you apply that towards your mortgage payment each month, you will trim 5 years 11 months off the length of the loan. You save $43,204 worth of interest. Pack those leftovers!

Calculations via Bankrate’s Additional Payment Calculator.

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Simple Cutbacks Save a Fortune [Infographic] by