Couple Pays Off $417,000 Mortgage 23 Years Early, Saving About $250,000 in Interest
Updated
Updated · The Union Leader · Jun 19
Couple Pays Off $417,000 Mortgage 23 Years Early, Saving About $250,000 in Interest
1 articles · Updated · The Union Leader · Jun 19
Summary
A couple who took out a $417,000 fixed-rate mortgage in 2013 said they cleared it in 2020, eliminating the loan 23 years early and avoiding roughly $250,000 in interest.
A 2018 mortgage recast drove the payoff plan: they put $250,000 toward principal, paid a $250 fee, kept the same rate, and cut the monthly payment by about $1,400.
Without the mortgage, their principal-and-interest bill of $2,144 a month disappeared, reducing total housing costs by roughly half even though property taxes still run about $20,000 a year and insurance about $2,800.
The author argues the payoff also allowed a 100% stock allocation in retirement accounts, a smaller emergency fund by $6,000 to $12,000, and more room for travel and children’s activities.
Using current average rates of 6.44%, the piece says even one extra annual payment on a $400,000 30-year loan could cut payoff time to 24 years and save nearly $110,000 in interest.