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$600,000 x 7.4% (interest only people usually don't have good credit) = $44,400
$44,400 / 12 = $3700 per month.
$3700 per month = no thanks...
Even if you make a $1000 over payment... total $4700 per month, you only change the next months rent to $3693.83... Which means next month you saved a whopping $6.17 by making that over payment.
Wow... Sounds like a good idea to me...
Make a $10,000 over payment... $3638.33 or $61.67 savings per month... Nice but it will be a while before those add up to match the $10,000 over payment... Like 13 years later... Of course continuing these payments will make a dramatic impact.... But if you can afford to make these payments, you can also afford to say $120,000 over the course of a year and use it as a down which would leave you with a $2960 mortgage interest per month.
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