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St Louis Real Estate Search

SAVE $$$…Reduce Your Mortgage; St. Louis Mortgage Interest Rate Update

One Additional Mortgage Payment a Year

There’s a simple trick to significantly reduce the length of your mortgage and save you thousands of dollars. The trick is to make one extra mortgage payment a year and apply that payment toward your loan’s principal.

This is the method being used by “Bi-Weekly Mortgage Reduction Services” and “Bi-Weekly Mortgage Savings Programs“. Only, when you do it yourself, you don’t pay a third party unnecessary set-up costs and fees!

Example: $100,000 loan, 30-year mortgage, 6.5% fixed interest rate

Extra Mortgage Payments/ Year Principal & Interest Additional Monthly Payment SAVINGS Total Paid # of Years
0 $567.79 0 0 $227,542.98 29.92 / 359 mos.
1 $567.79 $47.32 $29,088.02 $198,454.96 24.12 / 290 mos.
2 $567.79 $94.64 $46,492.13 $181,050.85 20.5 /
246 mos.
3 $567.79 $141.96 $58,320.95 $169,222.03 17.92 / 215 mos.
4 $567.79 $189.28 $66,969.79 $160,573.19 15.92 / 191 mos.
5 $567.79 $236.60 $73,607.77 $153,935.21 14.34 / 172 mos.

One-time Payment

It may not be possible for you to increase your monthly mortgage payment. Keep in mind that most mortgages will permit you to make additional payments to your principal at anytime. Perhaps, five-years after moving into your home you receive a larger than expected tax return, or an inheritance or a non-taxable cash gift.  You could apply this money toward your loan’s principal, resulting in significant savings and a shorter loan period.

Example:

With a $100,000, 30-year, 6.5% fixed interest rate mortgage loan, the borrower will pay a total of $227,542.98 to pay back the loan in 30 years. That equals $127,542.98 in interest payments.

If the same borrower makes a one-time $5,000 payment the first day of year 6, he/she will pay a total of $204,710.75 and pay off the loan in 27 years (324 months). That’s a savings of $22,832.23 in interest.

St. Louis MORTGAGE INTEREST RATES for July 28, 2011:

  • Conventional 30-Year Fixed 4.750%/ 5.125% APR
  • Conventional 15-Year Fixed 3.875%/ 4.10% APR
  • Conventional 5/1 ARM 3.250%/ 3.180% APR
  • FHA/VA 30 Year Fixed 4.500%/ 5.00% APR
  • Jumbo 5/1 ARM 3.125%/ 3.000% APR
  • Jumbo 15 yr Fixed 3.750%/ 4.125% APR
  • Jumbo 30 yr Fixed 5.125%/ 5.425% APR

*The above mortgage rates are based upon an 80% LTV, o/o single family with FICO scores of 720.

Paramount Mortgage is a locally owned Mortgage Banker; we just celebrated our 40th anniversary. Great rates and programs are secondary to what is most desired in a lender relationship. The most sought-after aspects in this industry cannot be easily translated onto paper…learn more about us here.

For more information or if you have questions on mortgage rates you may contact me by phone at my direct line, (314) 372-4319, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.

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