Extra Payments Provide Huge Mortgage Savings
There's a simple trick to reduce the repayment period of your mortgage and save you thousands of dollars over the course of your loan: Make additional payments which are applied to your principal. People use different methods to meet this goal. For many people,Perhaps the simplest way to keep track is by making 1 additional mortgage payment a year. However, some folks will not be able to swing such a large additional payment, so dividing one extra payment into twelve additional monthly payments is a fine option too. Another very popular option is to pay half of your payment every other week. The effect here is that you will make one additional monthly payment each year. Each of these options yields different results, but each will significantly shorten the duration of your mortgage and lower the total interest you will pay over the life of the loan.
Lump Sum Extra Payment
It may not be possible for you to pay more every month or even every year. But it's important to note that most mortgages will allow additional payments at any time. You can benefit from this rule to pay extra on your principal when you get some extra money.
For example: five years after moving into your home, you get a huge tax refund,a very large inheritance, or a non-taxable cash gift; , investing a few thousand dollars into your home's principal can shorten the duration of your loan and save a huge amount on mortgage interest over the duration of the loan. Unless the mortgage loan is quite large, even a few thousand dollars applied early can yield huge benefits over the life of the loan.
Executive Lending Group, LLC can walk you Executive Lending Group, LLC has your mortgage answers. Give us a call at (816) 525-8000 & (81.
Got a Question?
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.