Sam and Diane need the internet in their new home, so they look at internet packages. They decide to go for the second tier internet, saving them $10 per month. And of course, they apply that extra $10 per month towards their mortgage.
It’s just $10 per month, right?
Well, just $10 per month extra will save Sam and Diane $7,078.40.
High five! Sam and Diane will take that!
- Home price: $315,000
- Interest rate: 4.185%
- Term: 30 years
- Prepayment: $10 per month
- Savings: $7,078.40