Coffee or Faster Mortgage Payout?

circular-headshotBy Caroline Abkar | Red Tree Realty | May 2016

Ok, most of you won’t like this because the pure thought of giving up that cup of freshly brewed coffee is torture. But think about it for a moment. If you gave up that cup or put just as much as that cup towards your principal every month, you could generate significant savings on your home mortgage.

To illustrate, let’s assume you have a $500,000 loan over 30 years with a 4% interest rate. If you put $4/day towards your principal ($120/month), you end up saving $36,023.00 by slashing off 2 years and 7 months of payments.

Wait, isn’t that the price of the brand new Tesla Model 3 coming next year?…. 🙂

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