Save on your Mortgage Loan
Paying regular extra payments toward your principal yields singificant returns. You pay extra on principal by employing various techniques. For many people,Perhaps the simplest way to organize this process is by making one extra payment a year. However, many folks will not be able to afford such an enormous additional payment, so dividing a single extra payment into twelve extra monthly payments works as well. Another popular option is to pay a half payment every two weeks. The effect here is that you will make one extra monthly payment in a year. Each of these options produces different results, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
Some borrowers just can't make any extra payments. But you should remember that most mortgages will allow you to make additional payments at any time. Any time you get some unexpected cash, you can use this provision to make an additional one-time payment on your mortgage principal. For example: a few years after buying your home, you receive a very large tax refund,a very large inheritance, or a cash gift; , investing a few thousand dollars into your mortgage principal can significantly reduce the duration of your loan and save enormously on interest paid over the life of the loan. Unless the mortgage loan is quite large, even a few thousand dollars applied early in the loan period can produce huge savings over the duration of the loan.
MidTowne Mortgage can walk you At MidTowne Mortgage, we answer questions about money-saving strategies almost every day. Give us a call: (478) 746-2063.