Save on your Mortgage
Making consistent extra payments toward the principal will yield huge savings. Borrowers pay extra on principal in many different ways. For many people,Perhaps the simplest way to organize this process is by making one additional mortgage payment every year. Of course, many people won't be able to afford this huge additional payment, so dividing an extra payment into 12 additional monthly payments works too. Another popular option is to pay half of your payment every two weeks. The effect here is that you will make one extra monthly payment each year. These options differ slightly in reducing the total interest paid and reducing payback length, but each will significantly reduce the duration of your mortgage and lower the total interest paid over the life of the loan.
One-time Additional Payment
Some people just can't make any extra payments. Keep in mind that almost all mortgage contracts will permit you to make additional payments to your principal at any time. You can take advantage of this rule to pay down your mortgage principal when you get some extra money.
For example: several years after buying your home, you receive a very large tax refund,a large legacy, or a non-taxable cash gift; , paying a few thousand dollars into your home's principal will reduce the repayment period of your loan and save enormously on interest paid over the duration of the mortgage loan. For most loans, even this small amount, paid early enough in the mortgage, could offer big savings in interest and in the duration of the loan.
Amortgage.com can walk you through the pitfalls of getting a mortgage. Give us a call: 7814920796.