Simple Ways to Save on Your Mortgage
There's a trick to significantly reduce the length of your mortgage and save thousands over the course of your loan: Make extra payments that go to the loan principal. You can do this using a few different techniques. For many people,Perhaps the simplest way to keep track is to make one extra mortgage payment every year. If you can't pay an extra whole payment in one month, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Another option is to pay a half payment every other week. The result is you will make one extra monthly payment every year. Each of these options yields slightly different results, but they will all significantly shorten the length of your mortgage and lower the total interest paid over the duration of the loan.
Lump Sum Extra Payment
Some people just can't make extra payments. Remember that almost all mortgages will permit you to make additional payments to your principal at any point during repayment. Whenever you come into unexpected cash, consider using this provision to make a one-time additional payment toward your principal. For example: several years after buying your home, you receive a larger than expected tax refund,a very large legacy, or a non-taxable cash gift; , you could apply a portion of this money toward your mortgage loan principal, which would result in huge savings and a shorter payback period. Unless the loan is quite large, even modest amounts applied early can yield huge benefits over the duration of the loan.
America's Money Source can walk you the mortgage process. Give us a call: 4078987559.