Mortgage Savings Tips
There's a simple trick to significantly reduce the length of your mortgage and save thousands of dollars in interest: Make additional payments that are applied to your loan principal. People pay extra in a few different ways. For many people,Perhaps the simplest way to keep track is by making 1 extra mortgage payment a year. If you can't afford to pay an additional whole payment all at once, you can divide that payment by 12 and pay that additional amount monthly. Another popular option is to pay half of your payment every two weeks. The effect here is that you will make one extra monthly payment each year. Each option yields slightly different results, but they will all significantly shorten the duration of your mortgage and lower your total interest paid.
Lump-sum Additional Payment
Some folks just can't make any extra payments. But you should remember that most mortgage contracts allow you to make additional principal payments at any time. Any time you come into unexpected money, you can use this provision to make an additional one-time payment on principal. For example: several years after buying your home, you get a huge tax refund,a very large inheritance, or a cash gift; , paying several thousand dollars into your home's principal will reduce the repayment period of your loan and save enormously on mortgage interest paid over the life of the mortgage loan. For most loans, even a relatively small amount, paid early in the loan period, could offer big savings in interest and in the duration of the loan.
Sky Apply Mortgage, Inc can walk you the mortgage process. Give us a call at (813) 200-7931.
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