Paying regular extra payments on the loan principal will provide enormous savings. People accomplish this goal in several different ways. Making one extra payment one time every year is perhaps the simplest to arrange. However, many people can't afford such an enormous extra expense, so dividing a single additional payment into 12 additional monthly payments is a fine option too. Finally, you can commit to paying a half payment every other week. Each option yields different results, but each will significantly shorten the length of your mortgage and lower your total interest paid.
Lump-sum Additional Payment
Some folks can't manage any extra payments. But you should remember that most mortgage contracts allow you to make additional principal payments at any time. Any time you come into extra cash, consider using this provision to make an additional one-time payment toward principal. Here's an example: several years after buying your home, you get a very large tax refund,a very large inheritance, or a non-taxable cash gift; , you could pay a portion of this windfall toward your loan principal, which would result in huge savings and a shortened loan period. Unless the loan is quite large, even a few thousand dollars applied early in the loan period can produce huge savings over the life of the loan.
Tenby J. Dahman The Dahman Team can walk you through the pitfalls of getting a mortgage. Give us a call: 3038627760.