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Facts About Conventional Mortgages*
- You will repay $431,677; more than two times the original amount borrowed before you own your home!
- After 10 years of paying on the loan, you will have made about $144,000.00 in payments, but only increased your equity by less than $33,000.00. That's over $111,000 in interest charges alone.
- The monthly payment of $1,199.10 reflects principal and interest only, and does not include taxes or insurance. Those amounts are ADDITIONAL and will INCREASE the monthly payment.
- Your mortgage interest is determined not only by the rate (%) and the amount borrowed ($), but by the length of time as well. Interest accrues on your outstanding principal balance. If you pay down that principal faster, you will REDUCE the interest charged over the life of the loan.
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*All examples used are based on a $200,000.00 mortgage, 30-year term at 6.00% fixed rate interest. Your savings will vary depending on the mortgage amount, rate and term used. Check with your plan representative to determine your actual savings.
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Tower Administrative Services, Inc. 8 Marticville Road, Lancaster PA 17603
Phone (877) 218-7281 Fax (717) 584-0276
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