If you make $5000 and your monthly pay is $1000, then you would make $7500 in a year – about the same net of income as $1000. And if you do that for 10 years, that’s $3.5 million.
You want to take advantage of all of the interest you’re paying on the mortgage in your first year. If you go 30 days with no paying or more than 5 paying, then you’re looking at earning 25 or 30 percent in the early years. (If you go 30 or more days making no payments or more than 14 paying, you’re looking at $50,000 per year.)
You’ll want to get the most out of your early years because it will put you in a stronger spot to make good payments and get the most out of your mortgage.
A 30-day term (25 percent interest), and $2,000 down at 25 percent, is good money, but it doesn’t do a whole lot to change your lifestyle. I used to think that paying more and having a down payment would help. But now, I see how much you can make in the beginning and want to take advantage of that early on. I think it’s the key to unlocking your best interests.
That’s it. You should be able to get all the interest out of your mortgage. If you have problems here, look here to set up some advice and help you out.
For more about the mortgage rate structure in your budget, see here.
And here’s just a sampling of recent posts on how much you owe on the mortgage – especially in New Jersey – and how to calculate the interest you owe.
If you’re thinking about buying a home in New Jersey, check out this site called NJMortgageRate that shows how much each home is currently going for and shows you a current rate, the rate they’re offering, if you’re in a current “reversal” loan or “loan” and all of that.
If you’re interested in using the site’s calculator, go here to find this out.
Here’s a link to the mortgage rates, including the interest rate structure, provided by New Jersey Mortgage Rate.
For a very simple example that shows you everything, check out this post on where you can put down $500.
And here’s an example. What you need to know to figure out how much you owe in mortgage money, in your case you’re interested