Save Big on Your Mortgage
Making regular extra payments on your loan principal yields huge returns. People make this happen in a few ways. Making one extra full payment once per year is likely the easiest to keep track of. However, some folks won't be able to swing such an enormous extra expense, so splitting a single extra payment into twelve additional monthly payments works too. Finally, you can commit to paying half of your mortgage payment every two weeks. These options differ slightly in lowering the total interest paid and shortening payback length, but each will significantly shorten the duration of your mortgage and lower the total interest you will pay over the duration of the loan.
One-time Additional Payment
Some people can't manage extra payments. Remember that virtually all mortgages will permit you to pay extra on your principal at any time. You can take advantage of this rule to pay extra on your mortgage principal when you get some extra money. Here's an example: several years after buying your home, you receive a very large tax refund,a large legacy, or a cash gift; , you could pay a portion of this money toward your loan principal, which would result in huge savings and a shorter loan period. Unless the mortgage loan is very large, even small amounts applied early can yield huge benefits over the duration of the loan.
Savers Home Loans can walk you through the pitfalls of getting a mortgage. Call us: (800) 974-0509.