Here's a simple trick to significantly reduce the length of your mortgage and save thousands of dollars in interest: Make additional payments which go to your principal. People pay extra in several ways. For many people,Perhaps the simplest way to keep track is by making 1 additional mortgage payment every year. If you can't afford to pay an additional whole payment in one month, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Another popular option is to pay half of your payment every two weeks. The result is you make one extra monthly payment every year. Each of these options produces different results, but each will significantly shorten the length of your mortgage and lower your total interest paid.
One-time Additional Payment
It may not be possible for you to pay extra every month or even every year. Keep in mind that virtually all mortgages will allow you to make additional payments to your principal at any time. You can take advantage of this provision to pay down your mortgage principal any time you come into extra money.
For example: five years after buying your home, you get a huge tax refund,a very large inheritance, or a non-taxable cash gift; , investing several thousand dollars into your mortgage principal will shorten the repayment period of your loan and save enormously on mortgage interest over the duration of the mortgage loan. For most loans, even this modest amount, paid early enough in the mortgage, could offer huge savings in interest and duration of the loan.
Sky Apply Mortgage, Inc can walk you At Sky Apply Mortgage, Inc, we answer questions about interest-saving strategies every day. Call us at (813) 200-7931.
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