Thursday, May 17, 2012

15 year mortgage - 7 months in and all awesome! And it will change your financial future...

After just 7 months of payments on our 15-year fixed mortgage we've paid down more principle than we had in the previous 20 months of our old 30-year fixed. Wow, that's some awesome!!

Here's a quick breakdown of the fantastic math:
$$ amount applied to loan principal for past 7 months
April - 908
March - 905
Feb - 903
Jan - 900
Dec - 897
Nov - 894
Oct - 891
Total applied to principal = $6,298

Looking over the notes from our old 30 year fixed mortgage for the last 7 months before the refi we paid a total of $2,046 towards principal. So the math is clear that the 15 year is awesome! $6,298 is much better than $2,046. It's basically money back in our pocket, albeit a pocket in some bank's database.

If you are at all able to refi to a 15 year fixed do it! It will change your financial future.


2 comments:

Louise said...

good on you! its a big saving!

chris said...

@Louise

thanks! it sure feels good to knock that principal down. i saw your post about your refi. great strategy aiming for those end of year balances!