Simple Ways to Save on Your Mortgage
Here's a simple trick to reduce the repayment period of your mortgage and save you thousands of dollars over the course of your loan: Make additional payments that apply to your principal. Borrowers can do this in various ways. Paying a single extra payment once a year is likely the simplest to track. If you can't afford to pay an additional whole payment all at once, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Another very popular option is to pay a half payment every other week. The effect here is that you will make one additional monthly payment each year. These options differ slightly in reducing the total interest paid and shortening payback length, but each will significantly reduce the duration of your mortgage and lower your total interest paid.
Additional One-time payment
It may not be possible for you to pay extra every month or even every year. Remember that most mortgages will allow you to pay extra on your principal at any point during repayment. You can benefit from this provision to pay extra on your principal when you get some extra money. If, for example, you were to receive an unexpected windfall five years into your mortgage, investing several thousand dollars into your mortgage principal will shorten the repayment duration of your loan and save enormously on interest paid over the life of the mortgage loan. Unless the loan is quite large, even a few thousand dollars applied early in the loan period can produce huge benefits over the duration of the loan.
America's Money Source can walk you the mortgage process. Give us a call at 4078987559.