Mortgage Saving Tips
Here's a simple trick to significantly reduce the length of your mortgage and save you thousands of dollars in interest: Make extra payments that are applied to the loan principal. Borrowers pay more on principal in many different ways. For many people,Perhaps the easiest way to organize this process is to make 1 extra payment every year. If you can't pay an extra whole payment all at once, you can divide your payment by 12 and pay that additional amount monthly. Finally, you can pay a half payment every two weeks. These options differ a little in reducing the final payback amount and reducing payback length, but they will all significantly reduce 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 just can't make extra payments. Remember that almost all mortgages will permit you to pay extra on your principal at any time. You can benefit from this rule to pay down your principal any time you come into extra money. Here's an example: a few years after buying your home, you get a very large tax refund,a very large legacy, or a cash gift; , paying several thousand dollars into your mortgage principal can significantly shorten the period of your loan and save a huge amount on mortgage interest over the duration of the mortgage loan. For most loans, even this small amount, paid early in the mortgage, could offer huge savings in interest and in the duration of the loan.
MidTowne Mortgage can walk you the mortgage process. Give us a call at (478) 746-2063.