Save Big on your Mortgage
Paying regular extra payments toward your loan principal provides huge returns. Borrowers use different methods to accomplish this goal. Paying 1 extra full payment one time per year is perhaps the simplest to arrange. However, some people won't be able to afford such an enormous additional expense, so dividing one extra payment into twelve additional monthly payments is a great option too. Another popular option is to pay half of your payment every other week. The effect here is that you make one additional monthly payment each year. Each option produces different results, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.
Additional One-time payment
It may not be possible for you to pay more every month or even every year. Remember that virtually all mortgage contracts will allow you to pay extra on your principal at any time. You can benefit from this rule to pay extra on your mortgage principal when you come into extra money. If, for example, you receive a large gift or tax refund five years into your mortgage, investing several thousand dollars into your home's principal will reduce the duration of your loan and save enormously on mortgage interest paid over the life of the mortgage loan. Unless the mortgage loan is very large, even a few thousand dollars applied early in the loan period can yield huge benefits over the duration of the loan.
Tenby J. Dahman can walk you At Tenby J. Dahman, we answer questions about money-saving strategies every day. Call us: 3038627760.