Save Big on Your Mortgage
Making consistent additional payments toward the principal provides singificant savings. People use different methods to meet this goal. Paying 1 additional payment one time every year is likely the simplest to keep track of. But many folks will not be able to pull off such an enormous extra expense, so splitting one additional payment into twelve additional monthly payments is a great option too. Finally, you can commit to paying a half payment every two weeks. Each of these options produces different results, but they will all significantly reduce the length of your mortgage and lower your total interest paid.
Lump-sum Additional Payment
Some borrowers just can't make extra payments. Remember that almost all mortgage contracts will allow you to make additional payments to your principal at any point during repayment. You can benefit from this rule to pay extra on your mortgage principal any time you get some extra money.
For example: several years after moving into your home, you receive a huge tax refund,a very large inheritance, or a non-taxable cash gift; , paying several thousand dollars into your mortgage principal can significantly shorten the period of your loan and save a huge amount on interest over the life of the mortgage loan. Unless the mortgage 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 through the pitfalls of getting a mortgage. Call us at 814-861-3310.