Save on your Mortgage
There's a trick to significantly reduce the length of your mortgage and save you thousands over the course of your loan: Make additional payments that are applied to your loan principal. You can do this using a few different techniques. For many people,Perhaps the easiest way to keep track is to make 1 additional mortgage payment a year. Of course, some people can't pull off such a large additional payment, so splitting one extra payment into 12 extra monthly payments works too. Finally, you can commit to paying a half payment every other week. These options differ a little in lowering the final payback amount and reducing payback length, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.
Additional One-time payment
It may not be possible for you to pay down your principal every month or even every year. But you should remember that most mortgages allow additional payments at any time. Whenever you get some unexpected cash, you can use this rule to make a one-time additional payment on your principal. Here's an example: several years after moving into your home, you receive a larger than expected tax refund,a large legacy, or a non-taxable cash gift; , investing a few thousand dollars into your home's principal can shorten the period of your loan and save enormously on interest paid over the life of the loan. Unless the loan is very large, even modest amounts applied early in the loan period can produce huge benefits over the life of the loan.
Professional Choice Mortgage can walk you the mortgage process. Give us a call at 814-861-3310.