Save on Your Mortgage
Making regular additional payments toward the principal balance will provide singificant savings. People use different methods to accomplish this goal. For many people,Perhaps the simplest way to keep track is to make one extra mortgage payment every year. If you can't pay an additional whole payment all at once, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Another option is to pay half of your payment every two weeks. The result is you will make one additional monthly payment each year. These options differ a little in lowering the total interest paid and reducing payback length, but they will all significantly reduce the duration of your mortgage and lower the total interest paid over the duration of the loan.
Additional One-time payment
It may not be possible for you to pay down your principal every month or even every year. Keep in mind that virtually all mortgages will allow you to make additional payments to your principal at any point during repayment. You can benefit from this provision to pay down your mortgage principal when you come into extra money. For example: a few years after moving into your home, you get a very large tax refund,a large legacy, or a non-taxable cash gift; , investing several thousand dollars into your mortgage principal will significantly reduce the period of your loan and save a huge amount on mortgage interest over the duration of the mortgage loan. For most loans, even this small amount, paid early in the loan period, could offer huge savings in interest and in the length of the loan.
Savers Home Loans can walk you Savers Home Loans has your mortgage answers. Call us: (800) 974-0509.