Huge Savings on Interest: Available to Anyone with a Mortgage
Paying regular extra payments toward your loan principal yields singificant returns. You can accomplish this in various ways. For many people,Perhaps the easiest way to organize this process is to make 1 additional mortgage payment a year. If you can't pay an additional whole payment all at once, you can divide your payment by 12 and pay that additional amount monthly. Another option is to pay a half payment every other week. The effect here is that you will make one extra monthly payment each year. These options differ a little in lowering the total interest paid and shortening payback length, but each will significantly reduce the length of your mortgage and lower the total interest you will pay over the life of the loan.
Lump Sum Extra Payment
It may not be possible for you to pay down your principal every month or even every year. Remember that almost all mortgages will permit you to make additional payments to your principal at any point during repayment. Whenever you come into unexpected money, you can use this rule to pay an additional one-time payment toward your mortgage principal. For example: a few years after buying your home, you receive a huge tax refund,a large legacy, or a non-taxable cash gift; , paying a few thousand dollars into your mortgage principal will significantly shorten the repayment period of your loan and save a huge amount on mortgage interest paid over the duration of the loan. For most loans, even a relatively small amount, paid early in the loan period, could offer big savings in interest and duration of the loan.
Savers Home Loans can walk you through the pitfalls of getting a mortgage. Give us a call: (800) 974-0509.