If you were to use your BLOC to make consecutive lump-sum payments of $5,000 every 4th month until your mortgage was paid off, you would see the approximate results as follows:
Please Note: these numbers are assumptions based on discretionary income remaining fixed. A true life example may show more or less discretionary income. The numbers may be different depending on your individual circumstance.
Mortgage Loan
Rate
Term
$300,000
6.00%
360 Months
Monthly Payment (no lump-sum payments):
$1,798.65
Total Interest to be Paid after 360 months:
$347,514
Mortgage Paid Off:
30 years
Interest Paid after making lump-sum payments:
$164,445
Interest Savings (approximately):
$183,069
Mortgage Paid Off:
14.1 years
Download this spreadsheet to run your own numbers.
