Additional Payments Yield Big Savings
There's a trick to significantly reduce the length of your mortgage and save you thousands of dollars in interest: Make extra payments that are applied toward the principal. People employ various techniques to meet this goal. For many people,Perhaps the easiest way to keep track is by making 1 additional payment a year. If you can't afford to pay an extra whole payment all at once, you can divide your payment by 12 and pay that additional amount monthly. Another popular option is to pay half of your payment every other week. The result is you will make one extra monthly payment every year. Each of these options yields slightly different results, but each will significantly reduce the length of your mortgage and lower the total interest you will pay over the duration of the loan.
Additional One-time payment
It may not be possible for you to pay extra every month or even every year. But you should remember that most mortgages allow additional principal payments at any time. You can benefit from this provision to pay extra on your principal when you get some extra money.
Here's an example: several years after moving into your home, you get a larger than expected tax refund,a large inheritance, or a cash gift; , paying a few thousand dollars into your home's principal will significantly reduce the repayment period of your loan and save enormously on mortgage interest paid over the duration of the mortgage loan. Unless the loan is very large, even a few thousand dollars applied early in the loan period can produce huge benefits over the life of the loan.
Amortgage.com can walk you Amortgage.com can answer questions about these interest savings and many others. Call us at 7814920796.