Save on Your Mortgage
Here's a simple trick to significantly reduce the length of your mortgage and save thousands in interest: Make extra payments which are applied toward the principal. Borrowers can accomplish this using a few different techniques. For many people,Perhaps the easiest way to keep track is by making 1 extra payment a year. Of course, many folks won't be able to pull off this huge extra expense, so splitting one additional payment into twelve extra monthly payments is a great option too. Finally, you can commit to paying a half payment every two weeks. Each option produces different results, but they will all significantly shorten the length of your mortgage and lower the total interest paid over the life of the loan.
Lump Sum Extra Payment
It may not be possible for you to pay extra every month or even every year. But it's important to note that most mortgages allow you to make additional payments at any time. You can take advantage of this rule to pay extra on your mortgage principal when you get some extra money.
If, for example, you were to receive an unexpected windfall three years into your mortgage, paying a few thousand dollars into your mortgage principal will significantly shorten the duration of your loan and save a huge amount on interest paid over the duration of the mortgage loan. Unless the loan is quite large, even a few thousand dollars applied early in the loan period can produce huge savings over the duration of the loan.
America's Money Source can walk you America's Money Source has your mortgage answers. Call us at 4078987559.