Save on your Mortgage
Here's a simple trick to reduce the repayment period of your mortgage and save you thousands of dollars in interest: Make extra payments that apply to your principal. People pay extra in several different ways. For many people,Perhaps the simplest way to keep track is by making 1 additional mortgage payment every year. However, many folks won't be able to swing this huge additional expense, so splitting a single additional payment into 12 extra monthly payments is a great option too. Another option is to pay a half payment every other week. The result is you make one additional monthly payment each year. These options differ a little in lowering the total interest paid and shortening payback length, but they will all significantly shorten the length of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
It may not be possible for you to pay down your principal every month or even every year. But you should remember that most mortgage contracts allow additional payments at any time. Whenever you get some unexpected cash, consider using this provision to make an additional one-time payment toward principal.
If, for example, you receive a surprise windfall just a few years into your mortgage, investing a few thousand dollars into your home's principal will significantly reduce the repayment duration of your loan and save enormously on mortgage interest paid over the duration of the loan. Unless the loan is quite large, even small amounts applied early in the loan period can yield huge savings over the life of the loan.
Savers Home Loans can walk you Savers Home Loans can answer questions about these interest savings and many others. Call us at (800) 974-0509.