Big Savings on Interest: Available to Anyone with a Mortgage
Here's a simple trick to significantly reduce the length of your mortgage and save thousands over the course of your loan: Make additional payments which are applied to your principal. Borrowers accomplish this goal in a few different ways. For many people,Perhaps the simplest way to keep track is to make 1 extra mortgage payment a year. If you can't afford to pay an additional whole payment all at once, you can divide that payment by 12 and pay that additional amount monthly. Finally, you can pay half of your mortgage payment every two weeks. These options differ a little in reducing the final payback amount 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 duration of the loan.
One-time Additional Payment
Some folks just can't make extra payments. But you should remember that most mortgage contracts allow you to make additional principal payments at any time. You can take advantage of this provision to pay down your principal any time you get some extra money. If, for example, you receive a very large gift or tax refund three years into your mortgage, paying several thousand dollars into your home's principal can shorten the repayment duration of your loan and save a huge amount on interest paid over the duration of the loan. Unless the mortgage loan is quite large, even a few thousand dollars applied early can yield huge savings over the duration of the loan.
National Asset Mortgage, LLC can walk you At National Asset Mortgage, LLC, we answer questions about money-saving strategies almost every day. Call us: (855) 391-3290.