How Much Is Saved

Expert, localized Los Angeles answers provided by Heather Roy

How Much Is Saved
	Dear Edith,, I would like to know how I could pay less for my mortgage in the long run. If I paid an extra $500 to the principal each year, how much would I be saving? I have a 30- year mortgage and owe about $140,000. I currently have a great rate with a 3-year adjustable-rate mortgage and know the rate will eventually go up to prime.

	After you make an extra payment, you will save the interest on $500 every year from then on. I can’t tell what that amounts to because I don’t know your interest rate, nor do you know what the rate will be in years to come. Nor do I know how many years are left on your loan. But take my word for it, you’ll be paying less interest than originally scheduled.
	Edith Originally published on November 29, 2005

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