Big Interest Savings: Available to Anyone

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 extra payments which go to the principal. Borrowers can do this in several ways. For many people,Perhaps the simplest way to organize this process is to make one extra mortgage payment a year. But some folks will not be able to pull off this huge extra payment, so dividing one additional payment into twelve additional monthly payments is a fine option too. Another option is to pay a half payment every other week. The effect here is that you will make one extra monthly payment every year. Each of these options produces different results, but each will significantly reduce the length of your mortgage and lower your total interest paid.

Lump Sum Extra Payment

It may not be possible for you to pay extra every month or even every year. Remember that almost all mortgage contracts will permit you to pay extra on your principal at any point during repayment. Whenever you get some unexpected money, you can use this rule to pay an additional one-time payment toward principal. If, for example, you receive a surprise windfall just a few years into your mortgage, you could apply this money toward your mortgage loan principal, resulting in huge savings and a shorter loan period. Unless the loan is quite large, even modest amounts applied early can yield huge benefits over the duration of the loan.

Sky Apply Mortgage, Inc can walk you through the pitfalls of getting a mortgage. Give us a call at 8132007931.