Big Interest Savings: Available to Anyone with a Mortgage
Paying regular additional payments toward the principal provides singificant savings. People use different methods to accomplish this goal. For many people,Perhaps the easiest way to organize this process is by making one additional mortgage payment per year. Of course, many people can't pull off this huge extra payment, so dividing one additional payment into 12 additional monthly payments is a great option too. Finally, you can pay half of your mortgage payment every other week. These options differ slightly in reducing the total interest paid and shortening payback length, but each will significantly reduce the duration of your mortgage and lower the total interest you will pay over the life of the loan.
One-time Additional Payment
Some borrowers can't manage extra payments. But you should remember that most mortgage contracts allow you to make additional principal payments at any time. You can benefit from this provision to pay extra on your mortgage principal when you come into extra money. For example: a few years after buying your home, you get a very large tax refund,a very large legacy, or a cash gift; , paying several thousand dollars into your mortgage principal will reduce the repayment period of your loan and save a huge amount on interest over the life of the loan. For most loans, even this modest amount, paid early in the mortgage, could offer huge savings in interest and length of the loan.
Savers Home Loans can walk you the mortgage process. Call us: (800) 974-0509.