Big Savings on Interest: Available to Anyone

Making consistent extra payments on your loan principal will yield big returns. Borrowers pay against principal in various ways. Paying a single extra full payment one time a year is perhaps the simplest to arrange. If you can't afford to pay an extra whole payment in one month, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Finally, you can commit to paying a half payment every other week. Each of these options yields slightly different results, 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 virtually all mortgages will permit you to pay extra on your principal at any point during repayment. You can benefit from this provision to pay down your principal any time you get some extra money. Here's an example: a few years after moving into your home, you receive a larger than expected tax refund,a very large legacy, or a cash gift; , investing a few thousand dollars into your mortgage principal can significantly shorten the repayment period of your loan and save enormously on interest paid over the duration of the mortgage loan. For most loans, even this small amount, paid early in the loan period, could offer huge savings in interest and in the length of the loan.

Tenby J. Dahman The Dahman Team can walk you the mortgage process. Call us at 3038627760.