Simple Ways to Save on Your Mortgage
Paying consistent additional payments toward the principal provides big savings. You can pay more on principal by employing various techniques. For many people,Perhaps the easiest way to keep track is to make 1 extra mortgage payment a year. If you can't pay an additional whole payment in one month, you can divide your payment by 12 and write a check for that additional amount monthly. Another popular option is to pay a half payment every other week. The result is you will make one additional monthly payment every year. These options differ a little in lowering the final payback amount and shortening payback length, but each will significantly shorten the duration of your mortgage and lower your total interest paid.
One-time Additional Payment
Some people can't manage any extra payments. Remember that almost all mortgages will permit you to pay extra on your principal at any point during repayment. Whenever you get some extra cash, you can use this rule to pay a one-time additional payment on your mortgage principal. If, for example, you receive an unexpected windfall just a few years into your mortgage, paying several thousand dollars into your home's principal will significantly shorten the period of your loan and save a huge amount on interest over the life of the mortgage loan. Unless the loan is very large, even modest amounts applied early in the loan period can yield huge benefits over the life of the loan.
Tenby J. Dahman can walk you the mortgage process. Call us at 3038627760.