Save on your Mortgage
There's a trick to reduce the repayment period of your mortgage and save thousands in interest: Make additional payments which apply to your loan principal. Borrowers pay extra on principal in various ways. Paying a single additional full payment once every year is probably the simplest to arrange. If you can't pay an additional whole payment all at once, you can divide your payment by 12 and write a check for that additional amount monthly. Finally, you can commit to paying a half payment every other week. Each of these options produces slightly different results, but each will significantly shorten the duration of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
Some people can't manage extra payments. But remember that most mortgages allow additional payments at any time. You can take advantage of this rule to pay extra on your mortgage principal when you come into extra money.
If, for example, you receive an unexpected windfall four years into your mortgage, you could apply this windfall toward your loan principal, which would result in significant savings and a shorter payback period. Unless the mortgage loan is quite large, even small amounts applied early can produce huge benefits over the life 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: (816) 525-8000 & (81.
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