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 that apply to the loan principal. People accomplish this goal in several ways. Paying one additional payment one time per year is likely the simplest to arrange. If you can't afford to pay an additional whole payment in one month, you can divide your 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 slightly different results, but each will significantly reduce the duration of your mortgage and lower the total interest paid over the life of the loan.
Lump-sum Additional Payment
It may not be possible for you to pay down your principal every month or even every year. Remember that most mortgage contracts will permit you to make additional payments to your principal at any point during repayment. You can benefit from this rule to pay extra on your principal any time you come into extra money.
Here's an example: five years after moving into your home, you get a larger than expected tax refund,a very large inheritance, or a cash gift; , investing several thousand dollars into your home's principal will shorten the repayment duration of your loan and save a huge amount on mortgage interest over the life of the mortgage loan. For most loans, even a small amount, paid early enough in the loan period, could offer big savings in interest and 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. Give us a call at (816) 525-8000 & (81.
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