SayStart.com | Part 1: Mortgage Payoff

— Slide 1: Using Your BLOC to Paydown a Mortgage —

Never Let Your BLOC Move Into Negative Territory

Your BLOC should not drop below a zero balance. This is money that you are giving away to the banks. So what should you do if your BLOC balance reaches zero:

How about paying down your mortgage:
Example:
assume you closed on the following mortgage loan four years ago to the month:

mortgage loan amount: $300,000
term: 30 years
APR: 6.00%

total monthly payment: $1,798.65
total payments made: 47 payments

you will then use your BLOC to make an additional payment of $5,000 on the next payment.

your BLOC will look like this:

BLOC Account Starting Credit Line Balance: $60,000
Month	BLOC Activity		Advances from BLOC	Payments to BLOC	Balance Owned
Aug Beginning Balance (from slide show #10)					$(844)
Aug	BLOC	Pay Mortgage Principal	$5000		$4,156
Aug	BLOC	Living Expenses	$4000		$8,156
Aug	Pay	Paycheck		$5,000	$3,156
Aug	Pay	Auto Loan Payment		$362	$2,794

Aug Activity			$9,000	$5,362	$2,794

Paying down your mortgage can save you money
by lessening the amount of interest you pay on your mortgage loan.

Your savings will approximate to the following:

You will be trading $18K mortgage in interest by using your BLOC to advance $5K.

Mortgage Loan	Rate	Term
$300,000	6.00%	360 Months

Monthly Payment:		$1,798.65
Total Interest to be Paid after 360 months:		$347,514

Interest to be Paid after making a $5,000 payment:		$329,504
Interest Savings (approximately):		$18,010

Download this spreadsheet to run your own numbers.

— FREE Download (MS Excel Worksheet)

If you have MS Excel - or other type program - use this amortization schedule to analyze your own payment and payoff numbers.

let's review this further in the next slide

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[view] SL1: Illustration
[view] SL2: Paying It Down Fast
[view] SL3: Multiple Payments
[view] Return: Slide Show
[view] Return: Success Plan

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Paydown mortgage