Save Big on your Mortgage Loan
Here's a simple trick to reduce the repayment period of your mortgage and save thousands over the course of your loan: Make additional payments that are applied to your loan principal. People pay extra in several different ways. For many people,Perhaps the simplest way to organize this process is by making 1 additional mortgage payment a year. If you can't afford to 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. Another popular option is to pay a half payment every two weeks. The effect here is that you make one additional monthly payment every year. Each option yields slightly different results, but each will significantly reduce 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. But you should remember that most mortgage contracts will allow you to make additional payments at any time. Any time you come into unexpected cash, consider using this rule to make an additional one-time payment toward mortgage principal. For example: five years after moving into your home, you get a huge tax refund,a very large inheritance, or a non-taxable cash gift; , you could pay a portion of this windfall toward your mortgage loan principal, resulting in significant savings and a shorter payback period. For most loans, even a relatively small amount, paid early enough in the mortgage, could offer big savings in interest and duration of the loan.
Tenby J. Dahman can walk you Tenby J. Dahman can answer questions about these interest savings and many others. Call us: 3038627760.