youtor.org
WHY THE LOWEST INTEREST RATE MAY COST YOU MORE UNLEARNING COMMON MORTGAGE STRATEGIES
>> YOUR LINK HERE: ___ http://youtube.com/watch?v=SvVqCsYfVA8
If you're looking to buy a home or invest in real estate, there are a few common misconceptions you need to reconsider when it comes to loans and mortgages. One of the biggest myths is that securing the lowest interest rate is the key to saving money. While it might seem like the lower the rate, the less you'll pay, this isn’t always true. The focus should be on the right interest rate that works best for your financial goals. Banks make money by lending you theirs, so when they offer you ways to “save,” you need to ask: why would a bank offer something that hurts their bottom line? The truth is, they’re still profiting, and focusing solely on getting the lowest rate might limit your ability to pay off the loan early or save money in the long run. • Refinancing to a lower interest rate is another area where people often go wrong. While it might reduce your monthly payment, it can increase your overall interest costs if it extends the loan term. By resetting the loan term to 30 years, you end up paying more in interest over time. What’s more effective is paying down your loan principal early. This strategy reduces your interest cost dramatically, allowing you to pay off your loan faster and save more money in the long run. So, instead of focusing on refinancing or lowering your rate, look for ways to cut down the total interest cost by making extra principal payments when possible. • Another common mistake is making large down payments. While it may seem logical to reduce your loan amount upfront, you can actually save more by keeping that extra money and applying it as a prepayment on the principal after the loan begins. For example, applying $100,000 as a prepayment on a $400,000 mortgage can knock off over 11 years from a 30-year loan and save more than double the interest you would save with a large down payment. This strategy allows you to maintain control of your cash while still significantly reducing your loan term and total interest paid. • Get a FREE Savings Earnings Report! https://bit.ly/3QqmPx5 Watch Subscribe to the PILL Method Youtube Channel! https://bit.ly/4aRITIy • #Dondaniel #PILLmethod #InterestCancellation #PayOfYourMortgage3to5years #PayOffStudentLoansFaster #ABetterWayToEliminateDebt #OptimizedBudgeting #PayOffMortgageFaster
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