Big Interest Savings: Available to Anyone
Here's a simple trick to reduce the repayment period of your mortgage and save thousands of dollars over the course of your loan: Make extra payments which are applied toward your principal. Borrowers can accomplish this in several ways. For many people,Perhaps the simplest way to organize this process is to make 1 extra payment every year. However, some folks will not be able to afford this huge additional expense, so dividing an additional payment into twelve extra monthly payments works too. Finally, you can commit to paying half of your mortgage payment every two weeks. These options differ a little in reducing the final payback amount and reducing 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.
Lump Sum Extra Payment
Some borrowers just can't make any extra payments. Remember that almost all mortgages will permit you to make additional payments to your principal at any time. Any time you come into unexpected cash, you can use this provision to pay an additional one-time payment on your principal. If, for example, you were to receive an unexpected windfall just a few years into your mortgage, you could pay a portion of this windfall toward your loan principal, which would result in huge savings and a shortened payback period. Unless the loan is very large, even a few thousand dollars applied early can yield huge savings over the duration of the loan.
Carter Financial Solutions can walk you the mortgage process. Give us a call: 866-840-8745 x2.
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