Save Big on Your Mortgage
Here's a simple trick to significantly reduce the length of your mortgage and save you thousands of dollars in interest: Make additional payments that apply toward the loan principal. People use different methods to meet this goal. For many people,Perhaps the easiest way to organize this process is by making one additional mortgage payment a year. Of course, some people will not be able to afford such a large additional payment, so dividing a single extra payment into 12 additional monthly payments works as well. Another popular option is to pay half of your payment every other week. The effect here is that you will make one extra monthly payment in a year. Each option produces different results, but they will all significantly shorten 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 more every month or even every year. Remember that almost all mortgages will allow you to pay extra on your principal at any time. You can take advantage of this rule to pay down your principal when you get some extra money.
For example: a few years after moving into your home, you get a huge tax refund,a very large legacy, or a non-taxable cash gift; , you could pay a portion of this money toward your mortgage loan principal, resulting in significant savings and a shorter loan period. Unless the mortgage loan is quite large, even small amounts applied early can yield huge savings over the life of the loan.
Executive Lending Group, LLC can walk you Executive Lending Group, LLC has your mortgage answers. Call us: (816) 525-8000.
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