Ever wonder how to keep from paying a lot of interest? This is a simple concept.
QUESTION: A listener says that making a double payment on the first payment of the mortgage would save a lot of interest. Is he right?
ANSWER: There are no magic tricks for mortgages. There’s nothing magic about making a double payment on your first payment. You’re simply prepaying some principle. In other words, you just didn’t borrow as much money and that saves you interest on the amount of the principle. If you’re going to do that, just do a smaller mortgage to start with.
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