Save on your Mortgage
There's a simple trick to reduce the repayment period of your mortgage and save thousands of dollars in interest: Make extra payments that go to your principal. People accomplish this goal in a few ways. Making one extra payment one time a year is likely the easiest to track. But some people will not be able to swing this huge additional expense, so splitting a single additional payment into twelve extra monthly payments is a great option too. Finally, you can pay a half payment every two weeks. These options differ slightly in reducing the final payback amount and shortening payback length, but each will significantly reduce the duration of your mortgage and lower your total interest paid.
One-time Additional Payment
Some folks just can't make extra payments. But remember that most mortgage contracts will allow additional principal payments at any time. Whenever you get some extra cash, consider using this rule to pay a one-time additional payment on your principal. Here's an example: a few years after buying your home, you receive a larger than expected tax refund,a large legacy, or a non-taxable cash gift; , investing several thousand dollars into your home's principal can reduce the duration of your loan and save a huge amount on interest paid over the life of the mortgage loan. Unless the loan is quite large, even modest amounts applied early can produce huge savings over the duration of the loan.
Tenby J. Dahman The Dahman Team can walk you At Tenby J. Dahman The Dahman Team , we answer questions about interest-saving strategies every day. Give us a call at 3038627760.