Pay down non- tax-deductible debt as quickly as possible.
See how much interest you can save by paying down your debt more quickly!
We will assume:
- You have a $100,000 mortgage.
- The interest is not tax deductible.
- Your interest rate is 7.5%.
Your monthly payment amount and the total interest paid will vary greatly depending on how long you take to pay off your mortgage.
The following table shows that you can save almost $80,000 by paying off a $100,000 mortgage over 10 years instead of 25 years:
|
Term (years) |
Monthly Mortgage Payment @7.5% Interest |
Total Mortgage Payments |
Total Interest Paid |
Amount Saved Using Shorter Term |
| 25 | $ 739 | $ 221,697 | $ 121,697 | $ 0 |
| 20 | $ 806 | $ 193,342 | $ 93,342 | $ 28,355 |
| 15 | $ 927 | $ 166,862 | $ 66,862 | $ 54,835 |
| 10 | $ 1,187 | $ 142,442 | $ 42,442 | $$ 79,255 |