Simple Ways to Save Big on Your Mortgage
Paying consistent extra payments on the loan principal will provide enormous returns. You can pay more on principal in many different ways. Making one additional full payment once per year is probably the easiest to arrange. If you can't afford to pay an additional whole payment in one month, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Another popular option is to pay half of your payment every two weeks. The result is you will make one additional monthly payment every year. These options differ a little in lowering the final payback amount and reducing payback length, but they will all significantly shorten the duration of your mortgage and lower your total interest paid.
Additional One-time payment
Some people can't manage any extra payments. Remember that almost all mortgages will permit you to make additional payments to your principal at any time. You can take advantage of this provision to pay down your principal any time you get some extra money. For example: a few years after moving into your home, you get a very large tax refund,a very large legacy, or a non-taxable cash gift; , paying several thousand dollars into your mortgage principal can significantly shorten the repayment duration of your loan and save enormously on interest paid over the life of the loan. Unless the mortgage loan is very large, even a few thousand dollars applied early in the loan period can produce huge savings over the life of the loan.
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