Which would you rather do – pay more for your mortgage or buy a new car?
It’s amazing what you can save by lowering your mortgage rate by just 1%. The savings pile up so much, you could pay cash for an extremely nice car with 15 years of savings.
Take a look at this infographic by Zillow. If you purchased a $300,000 home and put 20% down, and lowered your mortgage rate 1% to 4.5% from 5.5%, here are 4 examples of what you could purchase with the savings:
- With a lower monthly mortgage payment of $147, you could purchase about 40 Grande Lattes every month.
- With the $2,398 in savings over the first year of your loan, you could go on a nice vacation.
- With the $34,211 in savings over 15 years, you could pay cash for a new car.
- With the $$52,794 in saving over 30 years, you could make a 20% down payment on a $264,000 vacation home.