Extra Payments Provide Huge Mortgage Savings
Paying regular additional payments on the loan principal provides singificant savings. People employ various techniques to accomplish this goal. Paying 1 additional full payment once a year is likely the simplest to arrange. But some people won't be able to swing 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 effect here is that you will make one extra monthly payment each year. Each option yields different results, but each will significantly shorten the length of your mortgage and lower your total interest paid.
Additional One-time payment
Some folks can't manage any extra payments. But it's important to note that most mortgage contracts will allow you to make additional principal payments at any time. Whenever you come into unexpected cash, you can use this provision to pay a one-time additional payment on your mortgage principal. Here's an example: a few years after buying your home, you receive a very large tax refund,a very large legacy, or a cash gift; , you could apply this windfall toward your mortgage loan principal, which would result in huge savings and a shorter loan period. Unless the mortgage loan is quite large, even small amounts applied early in the loan period can yield huge savings over the duration of the loan.
Savers Home Loans can walk you Savers Home Loans can answer questions about these interest savings and many others. Give us a call: (800) 974-0509.