Suppose you take out a 30 year mortgage for $ 175000 at 9% interest. The monthly payments on this loan are $ 1408.09.
If you pay an extra 10% per month on your mortgage, how soon will you pay off the loan?
New length in years =
How much will you save in interest by making the extra payments?
Saving =
If you put $ 1408.09 per month into an annuity earning 10.25% interest compounded monthly for the remaining time on your original loan, how much money will you have at the end of the original 30 years?
Extra savings =