Save on Your Mortgage
Paying consistent additional payments toward your loan principal yields big savings. You can do this in several ways. Making 1 extra full payment once per year is perhaps the easiest to track. However, many folks can't swing this huge additional payment, so dividing one additional payment into twelve extra monthly payments works too. Finally, you can commit to paying a half payment every two weeks. These options differ slightly in reducing the final payback amount and shortening payback length, but each will significantly shorten the length of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
Some borrowers just can't make extra payments. But remember that most mortgages allow you to make additional payments at any time. Whenever you come into unexpected cash, you can use this provision to make a one-time additional payment on your principal.
Here's an example: five years after moving into your home, you get a larger than expected tax refund,a very large legacy, or a cash gift; , investing a few thousand dollars into your home's principal can shorten the period of your loan and save enormously on interest paid over the duration of the mortgage loan. For most loans, even a small amount, paid early in the mortgage, could offer huge savings in interest and in the duration of the loan.
Savers Home Loans can walk you the mortgage process. Call us at (800) 974-0509.