Save on your Mortgage Loan
Paying consistent additional payments toward the principal yields singificant returns. Borrowers employ various techniques to accomplish this goal. Paying one additional full payment one time a year may be the easiest to arrange. Of course, some people won't be able to swing such an enormous additional payment, so splitting a single additional payment into twelve extra monthly payments is a fine option too. Finally, you can commit to paying half of your mortgage payment every two weeks. These options differ a little in reducing the total interest paid and reducing payback length, but they will all significantly reduce the length of your mortgage and lower the total interest you will pay over the life of the loan.
One-time Additional Payment
It may not be possible for you to pay extra every month or even every year. But it's important to note that most mortgage contracts allow you to make additional principal payments at any time. Any time you come into extra cash, consider using this rule to make a one-time additional payment on mortgage principal.
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; , you could pay this windfall toward your mortgage loan principal, which would result in significant savings and a shortened payback period. For most loans, even this relatively modest amount, paid early in the mortgage, could offer huge savings in interest and length of the loan.
Professional Choice Mortgage can walk you Professional Choice Mortgage has your mortgage answers. Give us a call at 814-861-3310.