Save Big on Your Mortgage
Making consistent extra payments on your principal balance can yield huge savings. People employ various techniques to accomplish this goal. Making a single extra full payment one time every year is perhaps the easiest to track. Of course, many folks can't afford such a large extra expense, so splitting a single additional payment into twelve extra monthly payments works as well. Another 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. Each of these options produces slightly different results, but each will significantly reduce the length of your mortgage and lower the total interest you will pay over the duration of the loan.
Additional One-time payment
Some people can't manage extra payments. But remember that most mortgage contracts allow you to make additional principal payments at any time. Any time you get some extra cash, consider using this rule to pay a one-time additional payment toward principal. Here's an example: five years after moving into your home, you get a huge tax refund,a large legacy, or a cash gift; , paying several thousand dollars into your home's principal will reduce the duration of your loan and save a huge amount on interest over the duration of the mortgage loan. For most loans, even this relatively small amount, paid early enough in the mortgage, could offer big savings in interest and in the duration of the loan.
Executive Lending Group, LLC can walk you Executive Lending Group, LLC can answer questions about these interest savings and many others. Call us at 8165258000.
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