For many of us our mortgage is by far the biggest expense, a house is probably the most expensive thing we will ever buy and it takes the longest time to pay off.
In-fact it takes so long that it’s sometimes easy to forget that we are actually trying to get to a point where we don’t have a mortgage anymore. People often re-mortage to pay off debts without really considering that the piper needs to be paid at some point down the line.
If you have ever been bored enough to actually study your annual mortgage statement, you may have been shocked by how much of your monthly payment went towards the interest charges.
I mean mortgages are traditionally a super low rate loan right? Why not use it to fund short term debt?
But when you see all together in one place AND you look at it over the long term, you realise just how much of your hard earned cash is going towards….well – nothing really!
Don’t get me wrong, I think having a mortgage is a wonderful thing, especially if you can use the money NOT tied up in your house to invest in something that makes you MORE than the interest charged on your mortgage. (see my post on using debt to make money for more clarification on this).
This entire Debt Tracker Deluxe workbook has been designed to help you make a detailed catalogue of ALL your debts and credits in one place to enable you to restructure them so that you pay out as little as possible in interest ever month and therefore pay down your overall debt faster (less interest = more of your money goes to paying off the capital)
As part of this, the mortgage calculator is a super simple version of the much more complex versions you can find online (see HERE for some online ones). It’s purpose is to help you work out (approximately) how much interest you are paying and what a re-mortgage might look like for you.