Save Big on your 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 are applied to the loan principal. You pay against principal by employing various techniques. Making 1 additional payment one time per year may be the easiest to keep track of. If you can't pay an extra whole payment all at once, you can divide your payment by 12 and pay that additional amount monthly. Another option is to pay a half payment every other week. The effect here is that you make one extra monthly payment in a year. These options differ a little in lowering the total interest paid and reducing payback length, but each will significantly shorten the duration of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
Some people can't manage any extra payments. But you should remember that most mortgage contracts will allow you to make additional payments at any time. Whenever you get some extra money, you can use this provision to pay a one-time additional payment toward your mortgage principal.
If, for example, you receive a large gift or tax refund five years into your mortgage, investing a few thousand dollars into your home's principal can significantly reduce the duration of your loan and save enormously on mortgage interest over the life of the mortgage loan. For most loans, even a relatively modest amount, paid early in the mortgage, could offer big savings in interest and in the length of the loan.
America's Money Source can walk you At America's Money Source, we answer questions about interest-saving strategies every day. Call us at 4078987559.