Save on your Mortgage
There's a simple trick to reduce the repayment period of your mortgage and save thousands over the course of your loan: Make extra payments that apply toward the loan principal. People employ various techniques to meet this goal. Paying one extra payment once every year is likely the easiest to keep track of. But some folks won't be able to swing such a large additional expense, so splitting one additional payment into 12 extra monthly payments is a great option too. Another popular option is to pay a half payment every two weeks. The effect here is that you make one additional monthly payment every year. Each option produces different results, but they will all significantly shorten the length of your mortgage and lower the total interest paid over the life of the loan.
Additional One-time payment
Some folks can't manage extra payments. Remember that virtually all mortgages will allow you to make additional payments to your principal at any time. Any time you come into unexpected cash, consider using this rule to pay an additional one-time payment toward your mortgage principal. Here's an example: several years after moving into your home, you get a huge tax refund,a very large inheritance, or a non-taxable cash gift; , investing a few thousand dollars into your home's principal will significantly reduce the duration of your loan and save a huge amount on interest over the duration of the mortgage loan. Unless the mortgage loan is very large, even modest amounts applied early in the loan period can produce huge benefits over the life of the loan.
Howard Financial can walk you Howard Financial has your mortgage answers. Give us a call at (610) 889-7467.