Huge Savings on Interest: Available to Anyone
Paying regular extra payments on the principal can yield enormous savings. Borrowers use different methods to accomplish this goal. For many people,Perhaps the easiest way to organize this process is by making 1 extra mortgage payment every year. If you can't afford to pay an additional whole payment all at once, you can divide your payment by 12 and pay that additional amount monthly. Another popular option is to pay a half payment every other week. The result is you will make one extra monthly payment in a year. These options differ a little in reducing the final payback amount and shortening payback length, but each will significantly reduce the duration of your mortgage and lower the total interest you will pay over the duration of the loan.
Additional One-time payment
Some borrowers can't manage any extra payments. Keep in mind that most mortgages will allow you to pay extra on your principal at any time. You can benefit from this rule to pay down your mortgage principal when you get some extra money.
Here's an example: several years after moving into your home, you receive a larger than expected tax refund,a very large legacy, or a non-taxable cash gift; , you could apply a portion of this windfall toward your mortgage loan principal, which would result in enormous savings and a shortened loan period. Unless the loan is quite 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 almost every day. Give us a call: 425-508-9988.
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