Save on your Mortgage
There's a simple trick to significantly reduce the length of your mortgage and save you thousands over the course of your loan: Make extra payments which apply to your principal. Borrowers can pay more on principal in various ways. For many people,Perhaps the easiest way to keep track is by making 1 extra mortgage payment per year. However, some folks will not be able to pull off such a large extra expense, so dividing a single extra payment into twelve extra monthly payments is a fine option too. Finally, you can commit to paying half of your mortgage payment every two weeks. Each of these options yields slightly different results, but each will significantly reduce the duration of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
Some borrowers can't manage any extra payments. Keep in mind that most mortgage contracts will allow you to pay extra on your principal at any point during repayment. You can take advantage of this provision to pay down your principal when you come into extra money.
If, for example, you were to receive a large gift or tax refund just a few years into your mortgage, paying a few thousand dollars into your mortgage principal can reduce the period of your loan and save a huge amount on interest over the life of the mortgage loan. For most loans, even this modest amount, paid early in the loan period, could offer big savings in interest and length of the loan.
Executive Lending Group, LLC can walk you Executive Lending Group, LLC has your mortgage answers. Call us at (816) 525-8000.
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