Save Big on Your Mortgage
There's a simple trick to significantly reduce the length of your mortgage and save thousands of dollars in interest: Make extra payments that go toward your loan principal. People employ various techniques to meet this goal. For many people,Perhaps the easiest way to keep track is by making one extra mortgage payment a year. However, many people can't pull off such an enormous additional expense, so splitting a single additional payment into 12 additional monthly payments is a fine option too. Finally, you can commit to paying a half payment every other week. These options differ slightly in lowering the final payback amount and shortening payback length, but each will significantly shorten the length of your mortgage and lower the total interest you will pay over the life of the loan.
Lump Sum Extra Payment
It may not be possible for you to pay more every month or even every year. Keep in mind that almost all mortgage contracts will permit you to pay extra on your principal at any point during repayment. Any time you come into unexpected cash, you can use this rule to make an additional one-time payment on mortgage principal.
For example: several years after moving into your home, you receive a huge tax refund,a large legacy, or a non-taxable cash gift; , paying a few thousand dollars into your home's principal can reduce the repayment duration of your loan and save a huge amount on interest over the duration of the mortgage loan. For most loans, even this small amount, paid early enough in the loan period, could offer huge savings in interest and length of the loan.
National Asset Mortgage, LLC can walk you through the pitfalls of getting a mortgage. Give us a call: (855) 391-3290.