Extra Payments Yield Huge Savings
Paying regular additional payments on your loan principal yields enormous savings. Borrowers make this happen in several different ways. For many people,Perhaps the simplest way to keep track is to make 1 extra mortgage payment every year. If you can't afford to pay an extra whole payment all at once, you can divide your payment by 12 and write a check for that additional amount monthly. Another popular option is to pay a half payment every two weeks. The result is you will make one extra monthly payment each year. These options differ slightly in lowering the total interest paid and shortening payback length, but they will all significantly shorten the length of your mortgage and lower the total interest you will pay over the life of the loan.
Lump-sum Additional Payment
It may not be possible for you to pay down your principal every month or even every year. Remember that most mortgages will permit you to make additional payments to your principal at any time. You can benefit from this provision to pay down your principal when you get some extra money. If, for example, you were to receive an unexpected windfall four years into your mortgage, paying several thousand dollars into your mortgage principal will shorten the duration of your loan and save a huge amount on interest over the duration of the mortgage loan. Unless the loan is quite large, even a few thousand dollars applied early in the loan period can produce huge benefits over the life of the loan.
Sky Apply Mortgage can walk you through the pitfalls of getting a mortgage. Give us a call: (813) 200-7931.
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