Simple Ways to Save on Your Mortgage
Making consistent additional payments toward the loan principal yields huge savings. People use different methods to meet this goal. Making a single extra full payment once every year is likely the easiest to arrange. Of course, many people can't pull off this huge extra expense, so splitting one additional payment into 12 additional monthly payments is a great option too. Another very popular option is to pay half of your payment every other week. The result is you make one additional monthly payment each year. These options differ slightly in reducing the total interest paid and reducing 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.
Additional One-time payment
Some folks can't manage extra payments. But remember that most mortgage contracts allow additional payments at any time. Whenever you come into unexpected cash, consider using this provision to pay an additional one-time payment toward your principal. If, for example, you receive a surprise windfall three years into your mortgage, paying several thousand dollars into your mortgage principal will significantly shorten the period of your loan and save a huge amount on interest paid over the life of the loan. Unless the mortgage loan is very large, even a few thousand dollars applied early in the loan period can produce huge benefits over the life of the loan.
Crown Mortgage can walk you through the pitfalls of getting a mortgage. Call us at (434) 975-5626.
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