The sooner you pay off your mortgage, the more money you save. Each and every day you owe money on your home, the amount you owe increases. It’s called compound interest. Albert Einstein said, "It is the greatest mathematical discovery of all time." Mortgage interest is compounded monthly. 

Here’s how it works. To take out a $200,000 loan, you agree to pay your lender a certain interest rate to front the money to the seller on your behalf. It’s called a home loan. For example, you may agree to pay 6%. Six percent sounds like a fairly attractive mortgage interest rate. How much money is that?

Annual Mortgage Interest

$	200,000.00
	x          .06
$	12,000.00

Twelve thousand dollars is the maximum interest you’ll pay, if your home is paid for, in full, within a year. In fact, if you pay on a 30-year fixed rate schedule, because you’ve reduced the remaining loan amount by approximately $200 a month, you’ll pay only $11,933.19 interest. 

For the first year.

Why would you want to pay off your home sooner? The second year, you pay almost the same amount of interest. By then, you’re up to $23,714.90 in interest payments alone. And you still have a l-o-n-g way to go, because you own only $5000 of your house (besides your down payment or any windfall increases in property values).

Here are some examples of real mortgage interest, if paid conventionally: 

• A $100,000 loan at a 6% fixed interest rate for 30 years costs homebuyers $115,838 just in interest payments alone! Of course, the $100,000 must also be paid back, for a total of $215,838.
• Cutting the term in half, that is, entering into a 15 year mortgage at the same interest rate more than cuts the interest in half. The total mortgage interest at 6% for a 15-year fixed rate loan is $51,894, for a total payoff of $151,894.
• A $300,000 loan at 8% for 30 years costs $792,465.74.  

If you'd like to gain in-depth - yet simple to use - knowledge to cut yourself out of the herd of mindless cattle paying too much interest, exercise your option to request my private newsletter called MortgageRevolt:

Have you ever been walking down the boulevard around noon, and just as the aroma of garlic and peppers wafts toward you, you saw a sign: Pizza • Slices? As you neared the shop, you saw the painted window shouting in red on yellow: $2.00! “Wow! Pizza! Two bucks,” you said aloud. While rushing inside, you mentally searched your wallet to see whether you could also order a Coke.

Nearing the counter, you recall having pizza with a friend last Saturday night. You ordered a large, and the two of you devoured it. Now that the line has made you pause, you realize you’re staring down a single slice.

• The only difference between this and buying a house is…