Mortgage Savings Tips
Making consistent extra payments on your loan principal will provide singificant returns. Borrowers employ various techniques to meet this goal. Making a single additional full payment once every year is perhaps the simplest to arrange. However, many folks won't be able to swing this huge additional payment, so dividing a single additional payment into 12 extra monthly payments is a fine option too. Another very popular option is to pay a half payment every other week. The result is you make one extra monthly payment in a year. Each option yields slightly different results, but each will significantly shorten the length of your mortgage and lower your total interest paid.
Lump-sum Additional Payment
Some borrowers just can't make any extra payments. Keep in mind that almost all mortgages will allow you to make additional payments to your principal at any time. Whenever you get some unexpected cash, you can use this provision to make an additional one-time payment on your mortgage principal. 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 mortgage interest paid over the life of the loan. For most loans, even this modest amount, paid early enough in the loan period, could offer big savings in interest and in the duration of the loan.
National Asset Mortgage, LLC can walk you National Asset Mortgage, LLC has your mortgage answers. Give us a call: (855) 391-3290.