Huge Savings on Interest: Available to Anyone
There's a simple trick to significantly reduce the length of your mortgage and save thousands in interest: Make extra payments which apply to the loan principal. Borrowers pay more on principal by employing various techniques. Making a single additional payment one time per year is likely the easiest to track. Of course, some folks won't be able to afford this huge additional payment, so dividing one extra payment into twelve additional monthly payments works as well. Finally, you can pay half of your mortgage payment every other week. Each of these options yields slightly different results, but each will significantly reduce the length of your mortgage and lower the total interest paid over the life of the loan.
Additional One-time payment
It may not be possible for you to pay extra every month or even every year. But remember that most mortgage contracts allow additional payments at any time. You can take advantage of this rule to pay down your mortgage principal when you come into extra money.
For example: a few years after moving into your home, you receive a very large tax refund,a large legacy, or a non-taxable cash gift; , investing several thousand dollars into your home's principal can reduce the period of your loan and save enormously on interest paid over the duration of the mortgage loan. For most loans, even a modest amount, paid early enough in the loan period, could offer big savings in interest and length of the loan.
Sky Apply Mortgage, Inc can walk you At Sky Apply Mortgage, Inc, we answer questions about interest-saving strategies almost every day. Call us: (813) 200-7931.
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