Big Interest Savings: Available to Anyone
Making consistent additional payments toward your principal provides enormous savings. People employ various techniques to meet this goal. For many people,Perhaps the easiest way to organize this process is to make one extra payment every year. But some folks won't be able to pull off such a large additional expense, so splitting one extra payment into twelve additional monthly payments works as well. Finally, you can commit to paying a half payment every two weeks. These options differ slightly in lowering the final payback amount and reducing payback length, but each will significantly shorten the length of your mortgage and lower the total interest you will pay over the life of the loan.
Lump-sum Additional Payment
It may not be possible for you to pay down your principal every month or even every year. Remember that virtually all mortgages will allow you to make additional payments to your principal at any time. You can benefit from this provision to pay down your mortgage principal when you get some extra money. Here's an example: five years after buying your home, you get a larger than expected tax refund,a large legacy, or a non-taxable cash gift; , you could pay a portion of this money toward your loan principal, which would result in enormous savings and a shorter payback period. Unless the loan is quite large, even modest amounts applied early in the loan period can produce huge benefits over the life of the loan.
Executive Lending Group, LLC can walk you the mortgage process. Call us: 8165258000.
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