Save Big on your Mortgage
There's a trick to reduce the repayment period of your mortgage and save thousands of dollars in interest: Make additional payments which go toward your principal. People accomplish this goal in several ways. For many people,Perhaps the simplest way to keep track is to make one extra payment a year. If you can't afford to pay an extra whole payment all at once, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Another very popular option is to pay half of your payment every other week. The effect here is that you will make one additional monthly payment every year. These options differ a little in lowering the total interest paid and reducing payback length, but they will all significantly shorten the length of your mortgage and lower your total interest paid.
Lump-sum Additional Payment
Some folks just can't make extra payments. But it's important to note that most mortgage contracts allow you to make additional payments at any time. You can take advantage of this rule to pay down your principal any time you come into extra money. Here's an example: several years after buying your home, you get a very large tax refund,a large legacy, or a cash gift; , investing several thousand dollars into your home's principal can shorten the repayment duration of your loan and save enormously on mortgage interest paid over the life of the mortgage loan. For most loans, even a relatively modest amount, paid early enough in the mortgage, could offer huge savings in interest and in the duration of the loan.
America's Money Source can walk you the mortgage process. Call us: (407) 898-7559.
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