Huge Interest Savings: Available to Anyone with a Mortgage
Paying regular additional payments toward your loan principal can yield singificant savings. Borrowers accomplish this goal in several different ways. Paying a single extra full payment once a year is likely the simplest to arrange. If you can't afford to pay an additional whole payment in one month, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Finally, you can pay a half payment every other week. Each of these options yields slightly different results, but each will significantly shorten the length of your mortgage and lower the total interest you will pay over the duration of the loan.
Lump-sum Additional Payment
Some people can't manage extra payments. Keep in mind that almost all mortgages will permit you to pay extra on your principal at any time. Whenever you come into unexpected cash, consider using this rule to pay an additional one-time payment on principal. If, for example, you were to receive a surprise windfall five years into your mortgage, paying several thousand dollars into your home's principal can significantly shorten the repayment period of your loan and save a huge amount on mortgage interest over the duration of the loan. For most loans, even a relatively modest amount, paid early enough in the loan period, could offer huge 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 at (800) 974-0509.