Mortgage Savings Tips
Here's a simple trick to reduce the repayment period of your mortgage and save thousands of dollars in interest: Make additional payments that apply to the principal. Borrowers can accomplish this using a few different techniques. For many people,Perhaps the easiest way to organize this process is to make 1 additional mortgage payment every year. Of course, many people won't be able to afford such a large extra payment, so splitting an additional payment into 12 additional monthly payments works as well. Finally, you can pay a half payment every other week. Each of these options yields different results, but they will all significantly reduce the length of your mortgage and lower your total interest paid.
One-time Additional Payment
It may not be possible for you to pay down your principal every month or even every year. Keep in mind that almost all mortgages will permit you to pay extra on your principal at any point during repayment. You can take advantage of this provision to pay down your principal when you get some extra money. If, for example, you were to receive a very large gift or tax refund three years into your mortgage, you could pay a portion of this money toward your mortgage loan principal, resulting in enormous savings and a shorter payback period. Unless the loan is quite large, even small amounts applied early can yield huge savings over the life of the loan.
Professional Choice Mortgage can walk you At Professional Choice Mortgage, we answer questions about money-saving strategies every day. Call us at 814-861-3310.