Huge Interest Savings: Available to Anyone
Paying consistent additional payments on your principal yields huge savings. People make this happen in a few ways. For many people,Perhaps the simplest way to organize this process is to make 1 additional mortgage payment every year. If you can't pay an extra whole payment in one month, you can divide that payment by 12 and pay that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every other week. Each option yields different results, but they will all significantly reduce 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 mortgages will allow you to make additional payments at any time. You can take advantage of this rule to pay extra on your mortgage principal any time you get some extra money.
If, for example, you receive a surprise windfall four years into your mortgage, you could apply a portion of this windfall toward your loan principal, which would result in huge savings and a shortened payback period. For most loans, even this relatively small amount, paid early enough in the loan period, could offer huge savings in interest and in the duration of the loan.
America's Money Source can walk you the mortgage process. Give us a call at (407) 898-7559.
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