It means that you should try to keep your monthly mortgage payments at around 10% of your monthly income. And the total amount you borrow for the house should be no more than 15 times your annual income. This rule is important because it helps make sure that you can afford your mortgage payments and not have too much debt.

Buying a house is a very important decision, and it can be confusing to figure out how to pay for it. But there is a simple way to pay off your mortgage faster called the Mortgage 10/15 rule. This idea, shared by Sean Pan on TikTok, is becoming popular among smart homeowners and financial experts.

The 10/15 rule is a way to pay off your home loan faster. By adding an extra 10% of your mortgage payment every week, you can cut the time it takes to pay off your loan in half. This also helps you save money on interest. You can adjust the extra amount you pay each week to fit your budget.

When you have a mortgage, you have to pay extra money called interest to the bank. By paying more money towards the main amount you owe (called the principal), you can pay off the loan faster and save money on interest in the long run.

Who is helped by this plan?

By doing this, you can reduce the amount of interest you have to pay and own your home sooner. For example, if you have a $3,000 monthly mortgage, adding an extra $300 each week towards the principal can help you pay off your mortgage in half the time.

It's important to understand that while it's a good idea to pay an extra $300 every week, not everyone can do that. Everyone has different budgets and things they need to pay for. But the good news is that even if you can only afford to pay a little extra each week, it will still help. The important thing is to make sure that the extra money goes towards paying off the loan itself, instead of just saving it for later.

The 10/15 rule is a helpful guideline for paying off your mortgage. It means to try and put aside 10% of your income every month to go towards your mortgage payment. And if you can, try to pay at least 15% extra on top of your regular payment. It's important to remember that everyone's situation is different, so you might need to adjust the rule to fit your own finances.

Take a look at your budget and see if there are any places where you can spend less money. Then, you can use that saved money to pay off your mortgage faster. If it seems like too much to pay extra money every week, you can start with a smaller amount like $50 or $100. Even this little bit of extra money can help you save a lot in the long run. It's also important to keep track of mortgage rates, which are the interest rates for your loan. These rates can change, so it's good to know when it's a good time to borrow money or refinance your mortgage. Lower rates mean you have to pay less money over time, so if rates go down, it might be a good idea to look into refinancing to save even more money.

The Mortgage 10/15 rule helps you manage your mortgage in a smart way. It can save you a lot of money on interest and help you pay off your home faster. Even if you can't follow the rule exactly, you can still make extra payments towards your mortgage principal. This will make a big difference in the long run. By being careful with your mortgage payments, you can feel happy and free knowing that you will own your home completely sooner.