. Cranberries; : the national cranberry magazine. Cranberries. mortgage. How Does it Work Shorter-term financing makes it less expensive to pay off your mortgage because it chips away quicker at your principal and fights interest from accimiulating. "The mathematics of shorter- term financing are basic but astonishing, said Robert F. Richter, chairman of the Ameri- can Institute of CPA'S Real Estate Committee. The typical 15-year $100,000 mortgage currently available saves a mortgagee $154,000 over a 30-year conventional mortgage. Take a look at the amounts in principal and interest you p
. Cranberries; : the national cranberry magazine. Cranberries. mortgage. How Does it Work Shorter-term financing makes it less expensive to pay off your mortgage because it chips away quicker at your principal and fights interest from accimiulating. "The mathematics of shorter- term financing are basic but astonishing, said Robert F. Richter, chairman of the Ameri- can Institute of CPA'S Real Estate Committee. The typical 15-year $100,000 mortgage currently available saves a mortgagee $154,000 over a 30-year conventional mortgage. Take a look at the amounts in principal and interest you pay over the Ufe of a mortgage; With â a 30-year $100,000 mortgage, j assuming a 12-percent interest 'â ⢠rate, your monthly payment is i $1,029. i But $1,000 of your first pay- ! ment goes for the interest on your loan. Only $29 of that first payment nibbles at the $100,000 principal. Ten years hence, after 120 monthly pajmients, $935 of your monthly payment is for interest and $94 goes toward reduction of the principal. Finally, in the 25th year of this 30-year mortgage, after 292 payments, the majority of your monthly paymentâ $518 âwill go towards principal while $511 will pay the interest charges. According to both the FICPA and the AICPA, shorter-term financing cancels the worst Wanted Wisconsin Cranberry Grower wishes to purchase an existing cranberry marsh. STEVE (715)421-0917 (715) 593-2385 effects that interest accumula- tion has on mortgages. Thus, a survey of your options can save money. Paying Ahead If you are paying a mortgage, ask the lender if there is a penalty for prepajdng your mortgage. If not, compare the pay-ahead option with the range of invest- ment options open to you. Paying ahead on a 10-percent mortgage amounts roughly to investing in something with a 10 percent return, according to Mr. Richter. K you have a 10-percent mort- gage, you should opt to pay ahead only if you cannot get better than a 10-percent return elsewhere. When comparing your m
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