Huge Savings on Interest: Available to Anyone
Making regular extra payments toward the loan principal will provide huge returns. People use different methods to meet this goal. For many people,Perhaps the easiest way to keep track is by making 1 additional payment a year. But some people won't be able to afford such a large extra payment, so splitting one additional payment into 12 extra monthly payments is a fine option too. Finally, you can pay half of your mortgage payment every two weeks. Each of these options yields different results, but each will significantly reduce the length of your mortgage and lower your total interest paid.
Lump-sum Additional Payment
It may not be possible for you to pay extra every month or even every year. But remember that most mortgage contracts will allow additional payments at any time. You can benefit from this rule to pay extra on your mortgage principal when you get some extra money.
If, for example, you were to receive an unexpected windfall five years into your mortgage, investing several thousand dollars into your home's principal will shorten the period of your loan and save a huge amount on interest paid over the life of the loan. Unless the mortgage loan is very large, even small amounts applied early can produce huge savings 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.