Fact 1
Paying $1,900 a month in rent? Over five years that's about $121,048 to your landlord.
Assuming rent rises 3% a year. Owning means some of each payment builds your own equity instead.
Money facts
Money facts: the numbers that surprise people
Quick facts worked out from real math (using an example interest rate of 6.50%), each with a free calculator so you can try your own numbers. Share them with anyone who'd find them useful.
Fact 2
Raise your mortgage payment by 10% each time you get a pay rise, and a $300,000 loan could be paid off 14 yrs 2 mo early, saving about $170,375 in interest.
Example: 30-year loan at 6.50%, first rise after 2 years, then every 2 years, extra paid to principal.
Fact 3
Paying half your mortgage every two weeks adds up to one extra payment a year. On a $300,000 loan that saves about $87,256 and 5 yrs 10 mo.
Example: 30-year loan at 6.50%. Avoid companies that charge a fee to set this up.
Fact 4
Just $100 extra a month on a $300,000 mortgage could save about $60,995 in interest and 4 yrs.
Example: 30-year loan at 6.50%, extra paid to principal from the first month.
Fact 5
You may not need 20% down. Several loan types allow a much smaller down payment, and down payment help programs can cover some or all of it for buyers who qualify.
Requirements depend on the loan type, your credit and the program.
Fact 6
Paying mortgage insurance on a conventional loan? It can usually be removed once you reach 20% equity, worth about $125 a month on a $300,000 loan.
Example at a 0.5% yearly mortgage insurance rate. Rising home values can get you there sooner.
Fact 7
If rates fall 1% below yours, refinancing a $300,000 loan could cut your payment by about $201 a month.
Example: 7.50% vs 6.50%, 30-year loans, principal and interest only. Closing costs apply.
Fact 8
Own and live in your Florida home? The homestead exemption can take up to $50,000 off its taxable value, and Save Our Homes caps how fast that value can rise.
Apply with your county property appraiser by March 1.
About these examples. Unless stated otherwise, each example assumes a $300,000, 30-year fixed-rate loan repaid in 360 monthly payments at an example interest rate of 6.50%, principal and interest only. Payments shown do not include taxes and insurance, so actual payments will be higher. Real loans usually include fees, which make the annual percentage rate (APR) higher than the interest rate. These are illustrations of how the math works, not offers or quotes: rates can change and may not be available at commitment or closing, and all loans are subject to credit approval. Ask us for a Loan Estimate with your actual rate, APR and costs. Bill McElhill, NMLS #2176490, NEXA Lending, NMLS #1660690. Equal Housing Opportunity.
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Bill McElhill
- Realtor®, RE/MAX Titanium
- Loan Originator, NEXA Lending · NMLS #2176490
- Call or text 352-988-4900
- WhatsApp Bill
- Mortgages: BillMc@NEXAMortgage.com
- Real estate & general: Bill@HomesCalculator.com
Educational information only. This page gives general information to help you learn and plan. It is not legal, tax, financial or other professional advice, or an offer to lend. For advice on your situation, talk to a licensed professional. Terms of use