Big Interest Savings: Available to Anyone with a Mortgage
Making consistent additional payments on your principal will yield big returns. You can do this in several ways. For many people,Perhaps the easiest way to keep track is to make one additional mortgage payment per year. If you can't pay an extra whole payment in one month, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every two weeks. Each option produces slightly different results, but each will significantly reduce the duration of your mortgage and lower the total interest paid over the duration of the loan.
Lump-sum Additional Payment
It may not be possible for you to pay down your principal every month or even every year. Keep in mind that most mortgages will allow you to make additional payments to your principal at any time. Any time you come into extra money, you can use this provision to make a one-time additional payment toward mortgage principal.
If, for example, you were to receive an unexpected windfall four years into your mortgage, you could pay a portion of this windfall toward your mortgage loan principal, resulting in enormous savings and a shortened payback period. Unless the mortgage loan is quite large, even modest amounts applied early in the loan period can yield huge savings over the life of the loan.
Savers Home Loans can walk you through the pitfalls of getting a mortgage. Call us at (800) 974-0509.