Huge Savings on Interest: Available to Anyone

Making consistent additional payments on the loan principal provides singificant savings. Borrowers use different methods to meet this goal. For many people,Perhaps the easiest way to organize this process is by making one additional payment every year. However, many folks can't afford such a large additional expense, so splitting a single extra payment into twelve additional monthly payments works as well. Another very popular option is to pay a half payment every two weeks. The effect here is that you make one additional monthly payment every year. These options differ a little in lowering the final payback amount and reducing payback length, but each will significantly shorten the length of your mortgage and lower your total interest paid.

Additional One-time payment

Some borrowers just can't make any extra payments. But remember that most mortgage contracts will allow additional payments at any time. Whenever you come into unexpected money, you can use this rule to pay an additional one-time payment on your mortgage principal.

If, for example, you were to receive an unexpected windfall three years into your mortgage, investing a few thousand dollars into your mortgage principal can significantly shorten the duration 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 produce 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.