Big Interest Savings: Available to Anyone with a Mortgage
Here's a simple trick to significantly reduce the length of your mortgage and save you thousands of dollars in interest: Make additional payments which apply to your loan principal. Borrowers use different methods to accomplish this goal. For many people,Perhaps the simplest way to organize this process is by making one extra payment every year. But some folks will not be able to afford such a large extra expense, so dividing a single additional payment into 12 additional monthly payments is a great option too. Another option is to pay half of your payment every two weeks. The result is you make one additional monthly payment in a year. These options differ slightly in lowering the final payback amount and shortening payback length, but each will significantly shorten the duration of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
Some borrowers just can't make any extra payments. Remember that virtually all mortgage contracts will permit you to pay extra on your principal at any time. Any time you get some extra cash, you can use this provision to pay an additional one-time payment toward mortgage principal.
Here's an example: five years after moving into your home, you get a larger than expected tax refund,a very large inheritance, or a non-taxable cash gift; , investing several thousand dollars into your home's principal will significantly shorten the repayment period of your loan and save a huge amount on mortgage interest over the life of the loan. For most loans, even this modest amount, paid early in the loan period, could offer huge savings in interest and in the length of the loan.
America's Money Source can walk you America's Money Source can answer questions about these interest savings and many others. Give us a call: (407) 898-7559.
Got a Question?
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.