Huge Savings on Interest: Available to Anyone

Paying consistent extra payments toward the principal balance will yield enormous savings. You pay extra on principal in many different ways. Making 1 additional payment once per year is perhaps the easiest to track. If you can't pay an extra whole payment in one month, you can divide that payment by 12 and pay that additional amount monthly. Another very popular option is to pay a half payment every two weeks. The effect here is that you will make one extra monthly payment every year. These options differ a little in lowering the total interest paid and reducing payback length, but they will all significantly shorten the length of your mortgage and lower the total interest you will pay over the life of the loan.

Lump Sum Extra Payment

Some folks can't manage any extra payments. But remember that most mortgages will allow you to make additional payments at any time. You can benefit from this provision to pay down your principal any time you get some extra money.

For example: five years after buying your home, you get a larger than expected tax refund,a very large legacy, or a cash gift; , investing a few thousand dollars into your home's principal will significantly shorten the period of your loan and save a huge amount on interest over the duration of the mortgage loan. Unless the loan is very large, even small amounts applied early in the loan period can yield huge savings over the duration of the loan.

Executive Lending Group, LLC can walk you through the pitfalls of getting a mortgage. Call us: 8165258000.