Save Big on your Mortgage Loan
There's a simple trick to significantly reduce the length of your mortgage and save thousands in interest: Make additional payments which are applied to your loan principal. People use different methods to accomplish this goal. For many people,Perhaps the easiest way to keep track is by making one additional mortgage payment a year. But many people won't be able to afford such a large extra expense, so dividing a single additional payment into twelve extra monthly payments works as well. Another option is to pay a half payment every other week. The result is you make one additional monthly payment each year. Each of these options produces slightly different results, but they will all significantly shorten the length of your mortgage and lower your total interest paid.
One-time Additional Payment
Some borrowers can't manage extra payments. But it's important to note that most mortgages allow additional payments at any time. You can benefit from this rule to pay extra on your mortgage principal when you get some extra money. Here's an example: a few years after buying your home, you get a huge tax refund,a large inheritance, or a non-taxable cash gift; , investing a few thousand dollars into your mortgage principal will significantly shorten the repayment period of your loan and save a huge amount on interest paid over the duration of the 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.
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.