Big Interest Savings: Available to Anyone with a Mortgage
Paying consistent extra payments toward your loan principal can yield huge savings. Borrowers make this happen in a few different ways. Making a single additional payment one time per year is likely the simplest to track. If you can't pay an additional whole payment all at once, you can divide your payment by 12 and pay that additional amount monthly. Finally, you can commit to paying a half payment every two weeks. Each of these options yields different results, but they will all significantly shorten the duration of your mortgage and lower the total interest you will pay over the life of the loan.
Lump Sum Extra Payment
Some people can't manage extra payments. Keep in mind that virtually all mortgages will allow you to pay extra on your principal at any time. You can benefit from this rule to pay down your mortgage principal when you come into extra money.
Here's an example: five years after moving into your home, you get a very large tax refund,a large legacy, or a non-taxable cash gift; , paying several thousand dollars into your home's principal can shorten the duration of your loan and save a huge amount on mortgage interest over the life of the mortgage loan. For most loans, even a modest amount, paid early in the loan period, could offer huge savings in interest and in the length of the loan.
Crown Mortgage can walk you through the pitfalls of getting a mortgage. Give us a call at (434) 975-5626.
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