Big Savings on Interest: Available to Anyone with a Mortgage

Paying regular additional payments toward your loan principal provides big savings. Borrowers accomplish this goal in several different ways. Paying a single additional payment one time a year is probably the easiest to arrange. Of course, some people won't be able to swing such an enormous extra payment, so dividing an extra payment into 12 additional monthly payments is a fine option too. Finally, you can commit to paying half of your mortgage payment every two weeks. Each of these options produces slightly different results, but each will significantly reduce the length of your mortgage and lower the total interest you will pay over the duration of the loan.

Additional One-time payment

It may not be possible for you to pay down your principal every month or even every year. But remember that most mortgages will allow additional payments at any time. Any time you come into unexpected money, you can use this provision to pay a one-time additional payment toward your principal. Here's an example: several years after buying your home, you get a very large tax refund,a very large legacy, or a non-taxable cash gift; , investing several thousand dollars into your mortgage principal will significantly reduce the duration of your loan and save a huge amount on mortgage interest over the duration of the mortgage loan. For most loans, even this relatively modest amount, paid early enough in the loan period, could offer huge savings in interest and in 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. Call us at 8165258000.