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 go toward the loan principal. People use different methods to meet this goal. Paying 1 extra full payment one time every year is likely the simplest to track. Of course, some people will not be able to afford this huge extra expense, so splitting a single additional payment into 12 additional monthly payments works as well. Finally, you can pay half of your mortgage payment every other week. Each of these options yields different results, but they will all significantly shorten the length of your mortgage and lower your total interest paid.
Additional One-time payment
It may not be possible for you to pay down your principal every month or even every year. But you should remember that most mortgages allow you to make additional payments at any time. Whenever you come into unexpected money, you can use this provision to make an additional one-time payment on principal.
If, for example, you were to receive an unexpected windfall five years into your mortgage, investing a few thousand dollars into your mortgage principal can shorten the repayment period of your loan and save a huge amount on mortgage interest paid over the duration of the mortgage loan. Unless the loan is very large, even a few thousand dollars applied early can produce huge benefits over the life of the loan.
Executive Lending Group, LLC can walk you through the pitfalls of getting a mortgage. Call us: 8165258000.
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