Have you ever heard the expression “a penny saved is a penny earned”? Consider: what if you were to take 5 years off your current mortgage by paying it down faster? Any idea what that would be worth??? For simple numbers consider: 60 payments at $2000 a month, 12 months x 5 years at $2000 a month. Presto! $120,000! Sound good to you? That is $120,000 you will now not have to pay back. The trick here is compounding interest. It is a really powerful way of making money. Banks have been doing it for years, so why not get it working for you (but in reverse)!?
In another article, The Dream Investment we looked at paying down your mortgage faster.
We talked about paying down your mortgage faster as a form of investment. I know what you’re thinking… really? Earn 3-4%? You think that is a good return? What if you want to do better than a measly 4%…what else do you have? Well let’s super charge that 4%. Many people have heard of compound interest. It is powerful over time! Also check out my recent blog on my Top 10 Tips for Paying down your mortgage in Vancouver.