Simple Ways to Save on Your Mortgage
Paying consistent additional payments on the principal balance yields big savings. Borrowers pay extra in a few ways. Making 1 extra full payment one time every year is perhaps the simplest to track. Of course, some people won't be able to afford such an enormous extra payment, so dividing an extra payment into twelve extra monthly payments works as well. Another very popular option is to pay a half payment every two weeks. The result is you make one extra monthly payment every year. These options differ slightly in reducing the final payback amount and reducing payback length, but each will significantly shorten the duration of your mortgage and lower the total interest paid over the duration of the loan.
Additional One-time payment
It may not be possible for you to pay more every month or even every year. Remember that virtually all mortgages will permit you to make additional payments to your principal at any time. Whenever you get some extra cash, you can use this provision to make an additional one-time payment on principal.
Here's an example: five years after moving into your home, you receive a larger than expected tax refund,a very large legacy, or a cash gift; , you could pay this money toward your loan principal, resulting in enormous savings and a shortened loan period. Unless the mortgage loan is quite large, even a few thousand dollars applied early can produce huge benefits over the life of the loan.
Professional Choice Mortgage can walk you At Professional Choice Mortgage, we answer questions about money-saving strategies almost every day. Give us a call: 814-861-3310.