Simple Ways to Save Big on Your Mortgage
Paying consistent extra payments toward the loan principal will provide huge savings. Borrowers accomplish this goal in a few ways. For many people,Perhaps the easiest way to organize this process is by making 1 extra payment per year. If you can't pay an additional whole payment in one month, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can pay half of your mortgage payment every other week. These options differ slightly in reducing the final payback amount and shortening payback length, but they will all significantly shorten the duration of your mortgage and lower the total interest you will pay over the life of the loan.
One-time Additional Payment
Some folks can't manage extra payments. Remember that almost all mortgages will permit you to pay extra on your principal at any point during repayment. Any time you get some extra cash, you can use this provision to make an additional one-time payment on 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; , paying a few thousand dollars into your mortgage principal will reduce the repayment duration of your loan and save enormously on mortgage interest paid over the duration of the loan. Unless the mortgage loan is very large, even small amounts applied early in the loan period can produce huge benefits over the duration of the loan.
Financial Edge Mortgage Corp. can walk you At Financial Edge Mortgage Corp., we answer questions about money-saving strategies every day. Call us at 425-508-9988.
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