Big Savings on Interest: Available to Anyone
Here's a simple trick to reduce the repayment period of your mortgage and save you thousands over the course of your loan: Make additional payments which go toward the principal. You can accomplish this in several ways. For many people,Perhaps the easiest way to organize this process is to make one additional payment a year. Of course, some people will not be able to swing such an enormous additional expense, so splitting an additional payment into 12 additional monthly payments works too. Finally, you can pay half of your mortgage payment every two weeks. Each option produces different results, but they will all 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
It may not be possible for you to pay more every month or even every year. Keep in mind that virtually all mortgages will allow you to make additional payments to your principal at any time. You can benefit from this provision to pay down your mortgage principal any time you get some extra money.
For example: a few years after buying your home, you receive a very large tax refund,a large legacy, or a non-taxable cash gift; , investing a few thousand dollars into your home's principal will shorten the repayment period of your loan and save enormously on interest paid over the life of the loan. Unless the mortgage loan is very large, even a few thousand dollars applied early can produce huge benefits over the life of the loan.
Crown Mortgage can walk you the mortgage process. Call us at (434) 975-5626.
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