Big Interest Savings: Available to Anyone
Here's a simple trick to reduce the repayment period of your mortgage and save you thousands in interest: Make extra payments that are applied to the principal. You can accomplish this using a few different techniques. For many people,Perhaps the easiest way to keep track is to make one extra mortgage payment per year. If you can't afford to pay an extra whole payment in one month, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Finally, you can pay half of your mortgage payment every other week. Each of these options yields different results, but they will all significantly shorten the length of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
Some folks can't manage extra payments. But remember that most mortgages allow you to make additional principal payments at any time. Whenever you come into unexpected cash, you can use this provision to make a one-time additional payment on your mortgage principal. For example: several years after buying your home, you get a huge tax refund,a very large legacy, or a non-taxable cash gift; , you could apply this windfall toward your mortgage loan principal, resulting in significant savings and a shorter payback period. For most loans, even a relatively modest amount, paid early enough in the loan period, could offer big savings in interest and duration 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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