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To: Dog Gone
Make sure to figure not just your interest and cashflow savings.

Remember, you are resetting your amortization clock - the early years of a mortgage are mostly interest - you may just be throwing away all the payments you have already made.

Each case is different.
27 posted on 06/02/2003 5:29:03 PM PDT by P.O.E.
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To: P.O.E.
Remember, you are resetting your amortization clock - the early years of a mortgage are mostly interest - you may just be throwing away all the payments you have already made.

Not with a 10-year mortgage.

Hypothetical example: $100,000 loan, 4.5% interest, 10 year term:

The first payment is $1,036.38, $375 in interest, $661.48 in principal.

33 posted on 06/02/2003 5:35:49 PM PDT by justlurking
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