Save Big on your Mortgage
There's a simple trick to significantly reduce the length of your mortgage and save thousands of dollars in interest: Make additional payments which apply to your principal. Borrowers can accomplish this in various ways. For many people,Perhaps the simplest way to organize this process is by making one additional payment every year. If you can't afford to pay an extra whole payment all at once, you can divide that payment by 12 and write a check for that additional amount monthly. Another option is to pay half of your payment every two weeks. The effect here is that you will make one extra monthly payment in a year. These options differ slightly in lowering the total interest paid and shortening payback length, but each will significantly reduce the duration of your mortgage and lower your total interest paid.
Additional One-time payment
Some folks can't manage any extra payments. Keep in mind that almost all mortgages will allow you to pay extra on your principal at any point during repayment. You can take advantage of this provision to pay extra on your mortgage principal when you get some extra money.
For example: several years after moving into your home, you receive a huge tax refund,a large legacy, or a cash gift; , you could apply a portion of this windfall toward your mortgage loan principal, resulting in enormous savings and a shortened loan period. For most loans, even this modest amount, paid early in the mortgage, could offer huge savings in interest and length of the loan.
Financial Edge Mortgage Corp. can walk you Financial Edge Mortgage Corp. has your mortgage answers. Give us a call at 425-508-9988.
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