Big Savings on Interest: Available to Anyone with a Mortgage
Paying regular additional payments toward the loan principal can yield big savings. People accomplish this goal in a few different ways. For many people,Perhaps the simplest way to keep track is to make 1 extra payment a year. Of course, many folks can't pull off this huge extra expense, so splitting a single extra payment into twelve additional monthly payments is a fine option too. Another popular option is to pay half of your payment every two weeks. The result is you will make one extra monthly payment every year. These options differ slightly in reducing the total interest paid and shortening payback length, but each will significantly reduce the duration of your mortgage and lower the total interest you will pay over the life of the loan.
Lump Sum Extra Payment
Some folks can't manage any extra payments. But remember that most mortgages will allow you to make additional payments at any time. Whenever you get some extra money, consider using this rule to pay an additional one-time payment toward principal.
Here's an example: a few years after buying your home, you receive a huge tax refund,a very large legacy, or a non-taxable cash gift; , you could apply a portion of this windfall toward your loan principal, which would result in enormous savings and a shortened payback period. For most loans, even a modest amount, paid early in the loan period, could offer big savings in interest and in 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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