Save Big on your Mortgage
There's a trick to significantly reduce the length of your mortgage and save thousands in interest: Make extra payments that go toward your loan principal. Borrowers pay against principal by employing various techniques. For many people,Perhaps the easiest way to organize this process is to make 1 extra mortgage payment a year. Of course, some folks won't be able to afford such a large extra expense, so splitting an additional payment into twelve additional monthly payments is a fine option too. Finally, you can commit to paying half of your mortgage payment every other week. Each of these options yields different results, but each will significantly reduce the length of your mortgage and lower the total interest you will pay over the life of the loan.
Additional One-time payment
Some people can't manage any extra payments. Keep in mind that virtually all mortgages will permit you to pay extra on your principal at any time. Whenever you get some extra cash, consider using this provision to pay a one-time additional payment toward your mortgage principal. If, for example, you were to receive a very large gift or tax refund four years into your mortgage, you could pay this money toward your loan principal, resulting in enormous savings and a shortened payback period. Unless the loan is quite large, even a few thousand dollars applied early in the loan period can produce huge savings over the duration of the loan.
Financial Edge Mortgage Corp. can walk you through the pitfalls of getting a mortgage. Give us a call: 425-508-9988.
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