IS Paying Extra on Your Mortgage Worth It?

Vincenza Vicari-Bentley, AFC
Empowering Financial Wellness Program Coordinator

In Utah, the average home today sells for about $442,000 and most people finance that amount over 30 years paying around 4% interest. Now, let’s talk about how to pay that off quicker to save you a lot of money in interest, not to mention time.

Let’s say you really get intentional with your budget (or any extra money that may come your way) and decide to put an extra $100 per month towards the principal balance of your mortgage. You would end up saving about $28,000 in interest AND you would pay off your home mortgage loan 8 years sooner! 

Don’t discount the small amounts you can put towards debt, any amount more than the minimum payment amount can help save you tons of money in the long run!  If you would like to calculate the most efficient strategy to pay down all of your debts, use the free calculator tool at www.powerpay.org and see how much time and money you can save!