Mortgage Saving

Making consistent additional payments on the principal balance provides huge savings. You pay against principal in various ways. For many people,Perhaps the easiest way to organize this process is by making 1 extra payment a year. If you can't afford to pay an additional whole payment all at once, you can divide that payment by 12 and write a check for that additional amount monthly. Finally, you can pay a half payment every other week. These options differ a little in reducing the total interest paid and reducing payback length, but they will all significantly shorten the duration of your mortgage and lower the total interest you will pay over the life of the loan.

One-time Additional Payment

It may not be possible for you to pay down your principal every month or even every year. But you should remember that most mortgages will allow you to make additional principal payments at any time. You can take advantage of this rule to pay extra on your mortgage principal when you come into extra money. For example: several years after moving into your home, you get a larger than expected tax refund,a large legacy, or a cash gift; , paying several thousand dollars into your mortgage principal can reduce the repayment period of your loan and save a huge amount on mortgage interest over the life of the mortgage loan. Unless the mortgage loan is quite large, even modest amounts applied early in the loan period can yield huge benefits over the duration of the loan.

America's Money Source can walk you through the pitfalls of getting a mortgage. Call us: 4078987559.


America's Money Source

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