When it comes time for a mortgage do you rely on your lender to crunch the numbers for you? I see a lot of people who pay the amount their lender tells them but who haven't a clue where those numbers come from. Learning how small changes can affect a mortgage can help you make better decisions and literally save you tens of thousands of dollars. Adding even 5 to 10 dollars a month to a payment may seem trivial, but that money is huge in terms of paying down the principle of a loan early on. It can shorten the length of a loan or provide some breathing room if interest rates go up. It only means giving up one coffee a week. Interest rate fluctuations can force you to make larger payments. If you are able to look at how these might impact your life, you can better decide whether you can really afford a loan. If interest goes down, people tend to lower their payments - never do this as you are working against yourself. Keeping the payments the same if interest drops will save you money. Remember that when you apply for a loan, the lender stands to make a good deal of money from you. You should always check whether a few minor tweaks can save you some money. Even if you can't do the math, there are many free apps and websites that can do it for you.
