Hi -- Friends of mine just visited a mortgage broker for help in buying their first house. The broker told them that if they pay JUST ONE MONTH'S extra mortgage payment in the first month of the loan, it will cut the term of a 30-year mortgage by 8 years! Not only that, but the broker told them that if they make double payments for the first two months, it will cut the term of their loan by 16 years! Supposedly, after just making the double payment in the first one or two months, they can make the normal payment for the (now drastically reduced) term of the loan.I can't believe this could be possible! But if it is, I wish I'd known about it when I got my mortgage 11 years ago!Is this a little-known but brilliant strategy, or is it magical thinking? And what should my friends make of this mortgage broker's advice?
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