Attention Peoria, Glendale, and Phoenix home owners.
Paying off your mortgage early might actually cost you money.
1 in 4 homeowners make extra payments on their loans. But here's what most don't realize: if you have a rate under 3%, that's cheaper than inflation. One fifth of mortgage holders do. Meanwhile, credit cards and personal loans are bleeding you dry at much higher rates.
The math is simple. Take a $400,000 mortgage at 3.5%. Adding $500 monthly saves you $87,000 in interest and cuts 10 years off your loan. But if you're carrying other debt at 8% or 12%, you're losing money every single month.
Refinancing only makes sense with at least a 1 point rate drop. Otherwise, origination fees eat your savings. With rates averaging 6.75% right now, most people locked in at 3% should never refinance.
The strategy depends entirely on your specific rate and what else you owe.
DM me directly and I'll walk you through the math based on your actual situation.
