Huge Savings on Interest: Available to Anyone with a Mortgage

Here's a simple trick to significantly reduce the length of your mortgage and save thousands in interest: Make additional payments which apply toward the principal. You can pay extra on principal by employing various techniques. Paying a single additional payment once per year is perhaps the simplest to arrange. Of course, many people will not be able to pull off this huge additional expense, so dividing an extra payment into 12 extra monthly payments is a great option too. Another very popular option is to pay half of your payment every two weeks. The effect here is that you make one additional monthly payment every year. Each option yields different results, but they will all significantly reduce the length of your mortgage and lower the total interest you will pay over the duration of the loan.

Additional One-time payment

It may not be possible for you to pay down your principal every month or even every year. But it's important to note that most mortgage contracts allow you to make additional principal payments at any time. Any time you get some unexpected money, consider using this provision to make a one-time additional payment on your mortgage principal. If, for example, you receive a large gift or tax refund four years into your mortgage, paying several thousand dollars into your mortgage principal can significantly reduce the duration of your loan and save enormously on interest over the life of the loan. For most loans, even this relatively modest amount, paid early enough in the loan period, could offer huge savings in interest and 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. Give us a call: (813) 200-7931.