Huge Interest Savings: Available to Anyone
Making consistent additional payments toward your principal provides big savings. Borrowers pay extra in a few ways. Paying 1 additional payment once per year may be the easiest to arrange. If you can't pay an extra whole payment in one month, you can divide that payment by 12 and write a check for that additional amount monthly. Finally, you can pay half of your mortgage payment every two weeks. Each of these options produces different results, but they will all significantly shorten the duration of your mortgage and lower your total interest paid.
Additional One-time payment
Some borrowers just can't make any extra payments. But you should remember that most mortgages will allow you to make additional payments at any time. You can benefit from this rule to pay extra on your mortgage principal when you get some extra money. Here's an example: five years after moving into your home, you receive a larger than expected tax refund,a very large inheritance, or a non-taxable cash gift; , paying several thousand dollars into your home's principal will significantly shorten the repayment period of your loan and save a huge amount on interest paid over the life of the mortgage loan. For most loans, even a relatively small amount, paid early 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. Call us at 4078987559.