Extra Payments Provide Huge Mortgage Savings
There's a trick to reduce the repayment period of your mortgage and save you thousands of dollars over the course of your loan: Make extra payments that are applied to your loan principal. Borrowers can accomplish this in various ways. Making a single extra payment one time every year is perhaps the easiest to arrange. However, some people can't swing such an enormous extra payment, so dividing an extra payment into 12 extra monthly payments works too. Finally, you can pay a half payment every other week. These options differ slightly in lowering the total interest paid and shortening payback length, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.
Additional One-time payment
Some folks can't manage extra payments. Keep in mind that virtually all mortgage contracts will permit you to make additional payments to your principal at any point during repayment. Whenever you come into unexpected cash, you can use this provision to pay a one-time additional payment toward your mortgage principal.
For example: several years after moving into your home, you get a larger than expected tax refund,a large legacy, or a cash gift; , you could pay this windfall toward your mortgage loan principal, which would result in huge savings and a shorter loan period. For most loans, even this modest amount, paid early enough in the loan period, could offer big savings in interest and in the duration of the loan.
Sky Apply Mortgage, Inc can walk you At Sky Apply Mortgage, Inc, we answer questions about money-saving strategies every day. Give us a call: (813) 200-7931.
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