Save Big on your Mortgage
Making consistent additional payments toward the principal balance provides enormous savings. Borrowers pay extra in several ways. Paying one extra full payment once every year is likely the easiest to arrange. If you can't pay an extra whole payment all at once, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can pay half of your mortgage payment every two weeks. Each option yields slightly different results, but each will significantly reduce the duration of your mortgage and lower the total interest paid over the life of the loan.
Additional One-time payment
Some people just can't make extra payments. Keep in mind that most mortgages will permit you to pay extra on your principal at any time. You can benefit from this provision to pay extra on your mortgage principal any time you come into extra money.
If, for example, you were to receive a large gift or tax refund five years into your mortgage, paying a few thousand dollars into your mortgage principal can significantly reduce the repayment duration of your loan and save a huge amount on interest over the duration of the mortgage loan. Unless the mortgage loan is quite large, even modest amounts applied early can yield huge savings over the duration of the loan.
Tenby J. Dahman can walk you the mortgage process. Call us at 3038627760.