Simple Ways to Save on Your Mortgage
Paying regular extra payments on the principal provides big savings. Borrowers can accomplish this using a few different techniques. Paying one additional payment once a year is probably the simplest to keep track of. But many people can't swing such a large extra expense, so dividing an additional payment into 12 additional monthly payments is a fine option too. Another very popular option is to pay a half payment every two weeks. The effect here is that you make one additional monthly payment every year. Each option produces slightly different results, 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.
Lump-sum Additional Payment
Some borrowers can't manage extra payments. But remember that most mortgage contracts allow you to make additional payments at any time. You can benefit from this rule to pay extra on your mortgage principal when you get some extra money. For example: several years after buying your home, you receive a huge tax refund,a very large legacy, or a non-taxable cash gift; , investing a few thousand dollars into your mortgage principal can shorten the duration of your loan and save a huge amount on interest paid over the duration of the mortgage loan. For most loans, even a relatively small amount, paid early in the mortgage, could offer huge savings in interest and in the duration of the loan.
Crown Mortgage can walk you Crown Mortgage has your mortgage answers. Call us at (434) 975-5626.
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