Huge Interest Savings: Available to Anyone with a Mortgage
There's a simple trick to reduce the repayment period of your mortgage and save you thousands of dollars in interest: Make extra payments which are applied toward your principal. Borrowers can do this using a few different techniques. For many people,Perhaps the simplest way to keep track is by making one extra payment every year. But some folks won't be able to pull off such a large extra expense, so splitting an additional payment into 12 extra monthly payments works too. Finally, you can pay a half payment every other week. These options differ slightly in reducing the final payback amount and reducing payback length, but they will all significantly shorten the duration of your mortgage and lower your total interest paid.
Additional One-time payment
Some borrowers just can't make any extra payments. But it's important to note that most mortgages will allow additional principal payments at any time. Whenever you come into extra cash, you can use this rule to pay an additional one-time payment toward principal.
If, for example, you were to receive a very large gift or tax refund three years into your mortgage, you could apply this money toward your mortgage loan principal, which would result in significant savings and a shortened loan period. For most loans, even a small amount, paid early in the mortgage, could offer huge savings in interest and 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. Give us a call: (855) 391-3290.