Save Big on your Mortgage Loan
Here's a simple trick to reduce the repayment period of your mortgage and save you thousands of dollars in interest: Make extra payments which are applied toward your loan principal. People use different methods to meet this goal. Paying one extra full payment once per year is likely the easiest to arrange. If you can't afford to pay an extra whole payment all at once, you can divide your payment by 12 and pay that additional amount monthly. Finally, you can pay a half payment every two weeks. These options differ a little in reducing the final payback amount and shortening payback length, but they will all significantly shorten the duration of your mortgage and lower the total interest paid over the duration of the loan.
Lump Sum Extra Payment
It may not be possible for you to pay down your principal every month or even every year. But it's important to note that most mortgages allow you to make additional payments at any time. Whenever you come into extra money, you can use this rule to pay an additional one-time payment toward mortgage principal. If, for example, you were to receive an unexpected windfall four years into your mortgage, investing a few thousand dollars into your mortgage principal can significantly shorten the repayment duration of your loan and save enormously on interest paid over the life of the mortgage loan. For most loans, even a small amount, paid early in the mortgage, could offer huge savings in interest and in the length of the loan.
Executive Lending Group, LLC can walk you Executive Lending Group, LLC can answer questions about these interest savings and many others. Give us a call at (816) 525-8000 & (81.
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