Big Interest Savings: Available to Anyone with a Mortgage
Paying consistent extra payments on your loan principal will yield enormous returns. You pay more on principal in various ways. For many people,Perhaps the easiest way to organize this process is by making one extra mortgage payment a year. If you can't afford to pay an extra whole payment all at once, you can divide your payment by 12 and pay that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every two weeks. These options differ slightly in lowering the final payback amount and shortening payback length, but they will all significantly reduce the length of your mortgage and lower the total interest paid over the duration of the loan.
Lump Sum Extra Payment
It may not be possible for you to pay more every month or even every year. But remember that most mortgages will allow additional payments at any time. Any time you get some extra cash, consider using this provision to make an additional one-time payment toward mortgage principal.
If, for example, you receive a surprise windfall three years into your mortgage, investing a few thousand dollars into your home's principal can significantly reduce the duration of your loan and save enormously on mortgage interest over the life of the loan. For most loans, even a small amount, paid early in the loan period, could offer big savings in interest and in the duration of the loan.
MidTowne Mortgage can walk you At MidTowne Mortgage, we answer questions about interest-saving strategies every day. Call us: (478) 746-2063.