Save on your Mortgage
Paying consistent extra payments on your principal provides huge returns. Borrowers use different methods to meet this goal. Making a single extra payment once per year is perhaps the easiest to arrange. If you can't pay an extra whole payment all at once, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every two weeks. Each option yields slightly different results, but they will all significantly shorten the length of your mortgage and lower your total interest paid.
Additional One-time 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 permit you to pay extra on your principal at any time. Any time you get some unexpected cash, you can use this provision to pay a one-time additional payment on mortgage principal. If, for example, you were to receive an unexpected windfall four years into your mortgage, investing several thousand dollars into your mortgage principal can shorten the duration of your loan and save enormously on interest paid over the life of the mortgage loan. Unless the mortgage loan is very large, even modest amounts applied early in the loan period can produce huge savings over the life of the loan.
Financial Edge Mortgage Corp. can walk you At Financial Edge Mortgage Corp., we answer questions about money-saving strategies every day. Give us a call: 425-508-9988.
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