Paying Off Your Mortgage FAST!


— Slide 3: More Interest Than Principal Being Paid —

The Amount of Interest Paid Over the Term of the Loan is Very High

As illustrated below, you can see the total amount of interest and principal paid over the 30-year term at 6% for a $100,000 mortgage loan:

Total Payments $215,838.19
Total Interest Paid $115,838.19
Total Principal Paid $100,000.00

The borrower paid the lender more in interest than the amount that was borrowed.


Month

Starting
Balance

Monthly
Payment

Interest

Prin
1 $100,000.00 $599.55 $500.00 $99.55
2 99,900.45 599.55 499.50 100.05
3 99,800.40 599.55 499.00 100.55
4 99,699.85 599.55 498.50 101.05
357 2,368.52 599.55 11.84 587.71
358 1,780.81 599.55 8.90 590.65
359 1,190.17 599.55 5.95 593.60
360 596.57 599.55 2.98 596.57
Total: $215,838 $115,838 $100,000

Now imagine the accumulated interest payments paid for a $200,000 mortgage at 6% - 30 year term:

Total Payments $431,676.38
Total Interest Paid $231,676.38
Total Principal Paid $200,000.00

What about a $400,000 mortgage:

Total Payments $863,352.76
Total Interest Paid $463,352.76
Total Principal Paid $400,000.00

 

Download this spreadsheet to run your own numbers.

FREE Download (MS Excel Worksheet)

Scroll down the spreadsheet to see the accumulated interest paid over the life of your loan.

go to the next slide

 

Search


about mortgages (Part 1)