Turn Your $600 Stimulus Check Into $2307
Pay on your mortgage. Are you wondering how that is going to turn that $600 check into $2200 (actually $2307.97)? If you have a great rate on your mortgage, let’s say 5%, assuming you have 27 years left to pay, your savings would be $2307.97. In order to do this, you will need to write a check to your mortgage company and indicate that the money you are paying should go entirely towards principal.
To calculate what you will save based on the specifics of your mortgage, do the following:
- Get a calculator
- Type in your mortgage interest rate in decimal form and divide it by 12. If you have a 5% rate, the decimal representation of that is .05. For an 8.25% rate, the decimal representation is .0825. Divide that by 12.
- Add 1
- That number should be taken to the power of the number of months left to pay on the mortgage multiplied by 12. An example is 1.0825^27*12 (27 years left * 12 to get months).
- Multiply this number by the amount of your stimulus check.
- The result is the amount of money you will save if you apply your stimulus check to the principal on your mortgage.
x = decimal of interest rate y = number of months left to pay on mortgage z = amount of stimulus check
(((x/12) + 1)^y*12)*z = savings
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[...] $600 into $2240 I found this post on http://www.spendingless101.com that talks about a way to more than triple your economic stimulus check. Check it out. Published May 21 2008, 02:11 PM by jmoney Filed under: money, check, [...]