Save on your Mortgage Loan
Here's a simple trick to reduce the repayment period of your mortgage and save you thousands of dollars over the course of your loan: Make additional payments that are applied toward the loan principal. You can do this using a few different techniques. Making one additional payment one time every year is likely the simplest to keep track of. But some people will not be able to afford such a large extra expense, so splitting a single extra payment into 12 extra monthly payments is a great option too. Another option is to pay a half payment every other week. The result is you will make one extra monthly payment every year. These options differ a little in lowering the final payback amount and shortening payback length, but they will all significantly shorten the length of your mortgage and lower your total interest paid.
Additional One-time payment
Some people just can't make any extra payments. But it's important to note that most mortgage contracts allow you to make additional principal payments at any time. Whenever you come into extra money, you can use this rule to pay an additional one-time payment toward your principal. For example: a few years after moving into your home, you receive a huge tax refund,a large legacy, or a cash gift; , paying a few thousand dollars into your mortgage principal will shorten the repayment period of your loan and save enormously on mortgage interest paid over the duration of the mortgage loan. For most loans, even a small amount, paid early enough in the loan period, could offer big savings in interest and duration of the loan.
Tenby J. Dahman The Dahman Team can walk you the mortgage process. Give us a call: 3038627760.