Prepaying a Mortgage
It is true that prepaying a mortgage can save loan interest costs over
time. What is not widely understood is that this savings may come at the
expense of paying more income taxes and experiencing lost opportunity
costs on the extra payments which may result in costs greater than the
loan interest savings. The estimated total cost to the consumer is rarely
explained or calculated by many financial
institutions while the interest saved is always shown. Consumers
should be careful to obtain a complete and proper analysis before spending
their hard earned money on paying down their mortgage faster. LEAP
SYSTEMS, Inc. provides helpful information for you to review with your
mortgage broker.
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