Mortgage Savings Tips
Paying consistent additional payments on the loan principal can yield big savings. You can pay extra on principal in many different ways. For many people,Perhaps the simplest way to organize this process is to make one additional payment every year. If you can't afford to pay an additional whole payment all at once, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Another option is to pay half of your payment every other week. The result is you will make one extra monthly payment each year. Each of these options produces different results, but they will all significantly reduce the length of your mortgage and lower the total interest you will pay over the life of the loan.
Lump Sum Extra Payment
It may not be possible for you to pay extra every month or even every year. But remember that most mortgages will allow you to make additional principal payments at any time. You can benefit from this rule to pay extra on your principal any time you get some extra money. For example: several years after buying your home, you receive a larger than expected tax refund,a very large inheritance, or a cash gift; , you could pay this windfall toward your mortgage loan principal, which would result in enormous savings and a shorter payback period. Unless the mortgage loan is quite large, even a few thousand dollars applied early in the loan period can yield huge benefits over the duration of the loan.
Executive Lending Group, LLC can walk you At Executive Lending Group, LLC, we answer questions about interest-saving strategies every day. Give us a call: (816) 525-8000.
Got a Question?
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.