Additional Payments Yield Huge Savings

There's a trick to significantly reduce the length of your mortgage and save thousands of dollars over the course of your loan: Make extra payments which apply toward your principal. Borrowers can accomplish this using a few different techniques. Making 1 additional payment one time a year is probably the simplest to arrange. However, some people will not be able to pull off such an enormous extra payment, so dividing an additional payment into twelve additional monthly payments works as well. Finally, you can commit to paying a half payment every other week. Each option produces different results, but each will significantly reduce the length of your mortgage and lower your total interest paid.

Additional One-time payment

It may not be possible for you to pay more every month or even every year. Remember that most mortgages will allow you to make additional payments to your principal at any time. Any time you get some unexpected money, consider using this rule to pay a one-time additional payment on your principal. For example: several years after moving into your home, you get a very large tax refund,a large legacy, or a cash gift; , you could pay this money toward your loan principal, resulting in significant savings and a shortened loan period. Unless the loan is quite large, even modest amounts applied early can yield huge savings over the duration of the loan.

Sky Apply Mortgage, Inc can walk you Sky Apply Mortgage, Inc has your mortgage answers. Call us: 8132007931.