Huge Savings on Interest: Available to Anyone with a Mortgage
Paying regular extra payments on your principal balance can yield enormous savings. Borrowers employ various techniques to accomplish this goal. Paying one additional payment once every year is likely the simplest to track. However, some people will not be able to pull off this huge extra payment, so dividing one additional payment into twelve extra monthly payments works as well. Finally, you can pay a half payment every two weeks. These options differ slightly in lowering the total interest paid and reducing payback length, but each will significantly reduce the length of your mortgage and lower your total interest paid.
Lump-sum Additional Payment
Some folks just can't make any extra payments. Keep in mind that virtually all mortgages will permit you to make additional payments to your principal at any point during repayment. Whenever you get some extra cash, consider using this rule to make an additional one-time payment on your principal.
Here's an example: five years after moving into your home, you receive a very large tax refund,a very large inheritance, or a non-taxable cash gift; , investing several thousand dollars into your home's principal will significantly shorten the period of your loan and save a huge amount on interest over the duration of the mortgage loan. Unless the mortgage loan is quite large, even modest amounts applied early can yield huge benefits over the duration of the loan.
Executive Lending Group, LLC can walk you the mortgage process. Call us at (816) 525-8000 & (81.
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