🏡 The Power of One Extra Payment: Cut Years Off Your 30-Year Mortgage

By RAM REAL ESTATE INC.

Want to build equity faster, reduce interest, and pay off your home early—all without refinancing or breaking the bank? The secret might be just one extra payment a year.

Here’s how that simple move can make a big difference on a 30-year mortgage:

💡 How It Works

Let’s say you have a 30-year mortgage of $300,000 at a 6.5% interest rate. Your monthly payment (principal & interest only) is roughly $1,896.

Now imagine making just one extra payment per year—that’s around $1,896 annually, or about $158 per month if divided.

⏳ What You Gain

By making 1 extra payment per year:

• You can pay off your loan 4–5 years early

• You save $50,000–$70,000 or more in interest over the life of the loan

• You build equity faster, giving you more financial freedom

• You improve your debt-to-income ratio sooner—helpful for refinancing or investing

📊 Real Example

Loan: $300,000 | Term: 30 years | Rate: 6.5%

Standard payoff: 30 years | Total interest: ~$387,000

With 1 extra payment/year: Paid off in 25.5 years

Total interest saved: Over $65,000

💵 Bonus Tip: Use Your Tax Refund or Bonus

Instead of spending it, apply your refund or annual bonus toward your mortgage principal. You won’t even miss it—and it pays dividends in the long run.

⚠️ Make Sure It Goes to Principal

If you’re making extra payments, be sure to label them “principal only” on your lender’s portal or by contacting customer service. Otherwise, it may go toward future interest or escrow.

📞 Ready to Build Wealth Through Smart Homeownership?

At RAM REAL ESTATE INC., we don’t just help you buy a home—we help you grow your financial future.

Call us at 813-992-9816 to explore more wealth-building strategies as a Tampa homeowner.