Save Big on your Mortgage Loan
There's a simple trick to reduce the repayment period of your mortgage and save you thousands of dollars in interest: Make additional payments which go toward the principal. People employ various techniques to meet this goal. Paying a single additional full payment one time a year is likely the easiest to track. However, many people won't be able to pull off such a large additional payment, so splitting a single additional payment into 12 extra monthly payments is a fine option too. Finally, you can commit to paying a half payment every other week. These options differ slightly in reducing the total interest paid and shortening payback length, but they will all significantly shorten the duration of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
It may not be possible for you to pay extra every month or even every year. But remember that most mortgage contracts will allow you to make additional principal payments at any time. Any time you get some unexpected money, you can use this provision to make a one-time additional payment toward your mortgage principal.
If, for example, you receive a large gift or tax refund five years into your mortgage, you could pay this money toward your loan principal, which would result in huge savings and a shorter loan period. Unless the loan is very large, even a few thousand dollars applied early can yield huge benefits over the life of the loan.
Sky Apply Mortgage can walk you Sky Apply Mortgage can answer questions about these interest savings and many others. Call us at (813) 200-7931.
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