Huge Savings on Interest: Available to Anyone with a Mortgage
Here's a simple trick to reduce the repayment period of your mortgage and save you thousands of dollars in interest: Make extra payments that apply toward your loan principal. Borrowers accomplish this goal in a few ways. For many people,Perhaps the simplest way to organize this process is by making 1 extra payment a year. If you can't pay an extra whole payment all at once, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every two weeks. Each option produces different results, but each will significantly reduce the duration of your mortgage and lower the total interest you will pay over the life of the loan.
One-time Additional Payment
Some people can't manage extra payments. Remember that almost all mortgages will allow you to make additional payments to your principal at any time. You can take advantage of this provision to pay down your principal any time you get some extra money. Here's an example: a few years after moving into your home, you receive a larger than expected tax refund,a very large legacy, or a cash gift; , investing a few thousand dollars into your mortgage principal will reduce the repayment period of your loan and save enormously on mortgage interest paid over the life of the mortgage loan. For most loans, even this relatively modest amount, paid early enough in the mortgage, could offer huge savings in interest and in the duration of the loan.
Howard Financial can walk you Howard Financial can answer questions about these interest savings and many others. Call us: (610) 889-7467.