Extra Payments Provide Big Savings

Paying consistent additional payments on your principal yields huge returns. People pay extra in a few different ways. Making a single extra payment once per year is perhaps the easiest to keep track of. If you can't pay an additional whole payment in one month, you can divide that payment by 12 and pay that additional amount monthly. Finally, you can commit to paying a half payment every other week. Each option produces different results, but each will significantly reduce the duration of your mortgage and lower the total interest you will pay over the duration of the loan.

Lump Sum Extra Payment

Some people just can't make extra payments. Keep in mind that most mortgage contracts will allow you to make additional payments to your principal at any point during repayment. You can take advantage of this rule to pay extra on your principal when you come into extra money. For example: a few years after buying your home, you get a huge tax refund,a very large legacy, or a cash gift; , investing several thousand dollars into your mortgage principal will reduce the repayment period of your loan and save enormously on interest paid over the duration of the mortgage loan. Unless the mortgage loan is very large, even a few thousand dollars applied early can yield huge savings over the life of the loan.

Sky Apply Mortgage, Inc can walk you Sky Apply Mortgage, Inc can answer questions about these interest savings and many others. Call us at 8132007931.