This is the 3rd segment of a warning about an insidious component of your last mortgage payment

The devil of it is that last payment does not cost $1190.29. The interest on the last payment is not $5.92. The last payments costs $3,316. The $1184.37 principal paid on the last payment has been owed for 30 years. Therefore interest on it has been paid for 30 years. In fact, it’s the same amount per month that you see in the last payment: $5.92.

Multiply that $5.92 by 12 months a year to see that $71.06 a year has been paid to hold the privilege of paying the last $1184.37 later. The interest on the last payment is not$5.92. It’s $5.92 times 360, or $2131.87…interest. Combined with principal, the last payment on your $200,000 loan at 6% is $3316.24.

That’s why I say you can’t afford it. Yes, you may have enough money. But if you’re comfortable paying 180% interest for purchases, you may not have enough money long!

There are many techniques for reducing your mortgage and avoiding this outrageous interest. You'll find several early payoff techniques right here. You can’t afford 180%!