Additional Payments Provide Huge Savings
Here's a simple trick to significantly reduce the length of your mortgage and save you thousands of dollars over the course of your loan: Make additional payments which go toward your loan principal. People use different methods to accomplish this goal. For many people,Perhaps the simplest way to organize this process is to make 1 extra payment a year. If you can't pay an extra whole payment all at once, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every two weeks. Each option yields different results, but they will all significantly shorten the length of your mortgage and lower your total interest paid.
One-time Additional Payment
It may not be possible for you to pay down your principal every month or even every year. Keep in mind that virtually all mortgages will allow you to make additional payments to your principal at any point during repayment. You can take advantage of this provision to pay extra on your principal when you get some extra money. For example: a few years after buying your home, you receive a very large tax refund,a very large inheritance, or a non-taxable cash gift; , you could pay this money toward your mortgage loan principal, which would result in huge savings and a shortened loan period. Unless the loan is very large, even modest amounts applied early can produce huge savings 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.
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