Simple Ways to Save Big on Your Mortgage
Making regular extra payments toward your principal will yield huge savings. People employ various techniques to accomplish this goal. Making a single additional payment one time a year may be the easiest to arrange. But many folks won't be able to swing this huge extra expense, so dividing a single extra payment into twelve additional monthly payments is a fine option too. Another option is to pay half of your payment every two weeks. The effect here is that you will make one extra monthly payment every year. These options differ a little in reducing the final payback amount and shortening payback length, but they will all significantly shorten the length of your mortgage and lower your total interest paid.
Lump-sum Additional Payment
Some borrowers can't manage any extra payments. But remember that most mortgages will allow you to make additional principal payments at any time. Any time you get some extra cash, you can use this rule to pay a one-time additional payment toward principal.
If, for example, you receive an unexpected windfall five years into your mortgage, paying several thousand dollars into your home's principal will shorten the repayment duration of your loan and save enormously on mortgage interest over the life of the loan. Unless the loan is quite large, even small amounts applied early in the loan period can yield huge savings over the duration of the loan.
Executive Lending Group, LLC can walk you the mortgage process. Give us a call: (816) 525-8000 & (81.
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