Extra Payments Yield Big Mortgage Savings
There's a simple trick to significantly reduce the length of your mortgage and save you thousands of dollars over the course of your loan: Make extra payments which are applied toward your loan principal. People employ various techniques to meet this goal. For many people,Perhaps the easiest way to organize this process is to make one extra mortgage payment per year. Of course, some folks can't afford such an enormous extra expense, so splitting an extra payment into 12 additional monthly payments is a great option too. Another option is to pay a half payment every two weeks. The result is you make one additional monthly payment in a year. These options differ a little in reducing the total interest paid and reducing payback length, but each will significantly reduce the length 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 point during repayment. Whenever you come into extra money, you can use this rule to pay a one-time additional payment toward mortgage principal.
Here's an example: several years after moving into your home, you receive a larger than expected tax refund,a very large inheritance, or a non-taxable cash gift; , investing several thousand dollars into your mortgage principal can significantly shorten the period of your loan and save a huge amount on interest paid over the life of the loan. For most loans, even a modest amount, paid early enough in the loan period, could offer big savings in interest and duration of the loan.
Amortgage.com can walk you the mortgage process. Give us a call: 7814920796.