Save Big on your Mortgage

Making regular additional payments toward the principal provides big returns. You can accomplish this using a few different techniques. For many people,Perhaps the simplest way to keep track is to make 1 extra payment a year. Of course, some people can't swing such an enormous additional payment, so splitting an additional payment into twelve additional monthly payments works too. Finally, you can commit to paying a half payment every two weeks. Each of these options yields slightly different results, but they will all significantly shorten the length of your mortgage and lower your total interest paid.

Lump-sum Additional Payment

Some folks just can't make any extra payments. Remember that virtually all mortgages will permit you to pay extra on your principal at any time. You can take advantage of this provision to pay extra on your principal any time you come into extra money. If, for example, you receive an unexpected windfall five years into your mortgage, paying a few thousand dollars into your mortgage principal will reduce the repayment duration of your loan and save enormously on interest paid over the life of the mortgage loan. For most loans, even a modest amount, paid early in the loan period, could offer huge savings in interest and in the duration of the loan.

Tenby J. Dahman The Dahman Team can walk you through the pitfalls of getting a mortgage. Call us at 3038627760.