Big Interest Savings: Available to Anyone
Making consistent additional payments on the principal balance can yield huge returns. Borrowers make this happen in a few ways. For many people,Perhaps the simplest way to organize this process is to make 1 additional payment every year. If you can't pay an additional whole payment all at once, you can divide that payment by 12 and pay that additional amount monthly. Another very popular option is to pay half of your payment every other week. The effect here is that you will make one additional monthly payment every year. Each of these options yields different results, but each will significantly reduce the duration of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
Some people can't manage any extra payments. Keep in mind that almost all mortgages will permit you to pay extra on your principal at any time. Any time you come into extra cash, you can use this provision to make an additional one-time payment on principal. If, for example, you receive a very large gift or tax refund four years into your mortgage, you could apply a portion of this money toward your mortgage loan principal, which would result in significant savings and a shorter loan period. Unless the loan is very large, even a few thousand dollars applied early in the loan period can produce huge benefits over the life of the loan.
Carter Financial Solutions can walk you Carter Financial Solutions can answer questions about these interest savings and many others. Call us at 866-840-8745 x2.
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