Big Savings on Interest: Available to Anyone with a Mortgage
Here's a simple trick to significantly reduce the length of your mortgage and save thousands of dollars over the course of your loan: Make extra payments which are applied to the principal. People employ various techniques to meet this goal. For many people,Perhaps the simplest way to keep track is by making 1 additional mortgage payment a 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. Finally, you can commit to paying a half payment every two weeks. These options differ a little in reducing the final payback amount and shortening payback length, but each will significantly shorten the duration of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
It may not be possible for you to pay down your principal every month or even every year. Keep in mind that most mortgages will allow you to make additional payments to your principal at any time. You can benefit from this rule to pay down your mortgage principal when you get some extra money. If, for example, you receive an unexpected windfall five years into your mortgage, you could pay a portion of this windfall toward your loan principal, which would result in huge savings and a shortened loan period. Unless the loan is very large, even a few thousand dollars applied early in the loan period can yield huge benefits over the life of the loan.
Professional Choice Mortgage can walk you Professional Choice Mortgage can answer questions about these interest savings and many others. Give us a call at 814-861-3310.