Huge Interest Savings: Available to Anyone

Making consistent extra payments on your principal will provide big returns. Borrowers accomplish this goal in a few different ways. For many people,Perhaps the easiest way to keep track is to make one additional payment every year. Of course, some folks will not be able to swing this huge extra payment, so dividing one additional payment into 12 extra monthly payments works as well. Finally, you can commit to paying a half payment every other week. These options differ a little in lowering the total interest paid and shortening payback length, but each will significantly reduce the length of your mortgage and lower the total interest you will pay over the duration of the loan.

Lump-sum Additional Payment

It may not be possible for you to pay extra every month or even every year. But remember that most mortgage contracts will allow you to make additional payments at any time. Whenever you get some unexpected money, consider using this rule to make an additional one-time payment on your principal.

Here's an example: five years after buying your home, you receive a very large tax refund,a large legacy, or a cash gift; , paying a few thousand dollars into your mortgage principal will significantly shorten the duration of your loan and save enormously on interest paid over the duration of the mortgage loan. Unless the mortgage loan is quite large, even small amounts applied early in the loan period can produce huge benefits over the duration of the loan. can walk you At, we answer questions about interest-saving strategies every day. Give us a call at 7814920796.