Huge Interest Savings: Available to Anyone
There's a simple trick to significantly reduce the length of your mortgage and save thousands in interest: Make extra payments which are applied toward your principal. People make this happen in a few different ways. Paying 1 extra payment once every year is probably the easiest to arrange. But many folks will not be able to afford such an enormous additional expense, so dividing one extra payment into twelve additional monthly payments works too. Finally, you can pay half of your mortgage payment every other week. Each of these options yields slightly different results, but they will all significantly reduce the duration of your mortgage and lower the total interest you will pay over the duration of the loan.
Lump-sum Additional Payment
Some folks just can't make extra payments. But you should remember that most mortgage contracts allow additional principal payments at any time. Whenever you get some unexpected money, consider using this provision to pay an additional one-time payment on mortgage principal. Here's an example: five years after buying your home, you get a very large tax refund,a large legacy, or a cash gift; , you could apply this money toward your mortgage loan principal, which would result in enormous savings and a shortened loan period. For most loans, even this relatively modest amount, paid early enough in the loan period, could offer big savings in interest and duration of the loan.
Sky Apply Mortgage, Inc can walk you through the pitfalls of getting a mortgage. Call us at (813) 200-7931.
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