Investing in a bank savings account? Consider that you’ll make less than 1% and will have to pay income tax on the earnings. On the other hand, when you contribute extra cash to your house payment on a regular basis, you’ll essentially, earn at the mortgage interest rate which is certain to be more than you’re earning in the bank.
Making additional principal contributions on your mortgage will save interest, retire debt and build equity sooner. An extra $100 a month in the example shown will save thousands in interest and shorten the term of the mortgage as well.
Reducing your cost of housing is another way to improve the investment in your home. Achieve success! Becoming debt-free is a worthy goal that is achieved with discipline and good decisions. Suggestions like this are part of my commitment to help people be better homeowners when they buy, sell. . . and all the years in between.
Use My Equity Accelerator App to Calculate Your Savings.
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However, with interest rates as low as they have been in the last two years and the price of homes having come down considerably, it is possible that the standard deduction may be the better choice.
