Here's a simple trick to significantly reduce the length of your mortgage and save you thousands of dollars over the course of your loan: Make additional payments which apply toward the loan principal. Borrowers can accomplish this using a few different techniques. For many people,Perhaps the simplest way to keep track is by making 1 extra mortgage payment per year. Of course, some people won't be able to afford this huge additional payment, so splitting one additional payment into twelve extra monthly payments works too. Finally, you can pay half of your mortgage payment every two weeks. These options differ a little in reducing the total interest paid and shortening payback length, but each will significantly reduce the duration of your mortgage and lower your total interest paid.
Lump-sum Additional Payment
Some people can't manage extra payments. But you should remember that most mortgage contracts will allow you to make additional principal payments at any time. Whenever you get some unexpected money, consider using this rule to pay a one-time additional payment toward mortgage principal.
Here's an example: a few years after moving into your home, you get a larger than expected tax refund,a large legacy, or a cash gift; , paying several thousand dollars into your mortgage principal can significantly shorten the repayment duration of your loan and save enormously on interest over the life of the loan. For most loans, even a relatively small amount, paid early in the mortgage, could offer huge savings in interest and in the duration of the loan.
Sky Apply Mortgage, Inc can walk you Sky Apply Mortgage, Inc can answer questions about these interest savings and many others. Call us at (813) 200-7931.
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