Save on Your Mortgage
Making regular extra payments toward your principal balance will provide huge returns. Borrowers can do this in various ways. For many people,Perhaps the easiest way to keep track is to make one extra payment a year. But many folks can't afford this huge extra payment, so splitting a single additional payment into twelve extra monthly payments works as well. Finally, you can pay half of your mortgage payment every two weeks. These options differ slightly in lowering the final payback amount and shortening payback length, but they will all significantly reduce the length of your mortgage and lower the total interest paid over the life 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. But you should remember that most mortgage contracts allow additional payments at any time. Any time you come into extra money, consider using this provision to pay a one-time additional payment toward mortgage principal. If, for example, you receive a large gift or tax refund five years into your mortgage, investing several thousand dollars into your home's principal can significantly shorten the repayment duration of your loan and save enormously on interest paid over the life of the loan. Unless the mortgage loan is very large, even a few thousand dollars applied early in the loan period can yield huge savings over the life of the loan.
Carter Financial Solutions can walk you At Carter Financial Solutions, we answer questions about interest-saving strategies every day. Give us a call: 866-840-8745 x2.
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