Mortgage Savings Tips
Making regular extra payments on the loan principal yields singificant returns. People make this happen in a few ways. For many people,Perhaps the easiest way to keep track is by making 1 extra mortgage payment per year. However, many people can't pull off such an enormous extra payment, so dividing a single additional payment into twelve additional monthly payments is a fine option too. Another popular option is to pay half of your payment every other week. The effect here is that you make one extra monthly payment each year. Each of these options yields slightly different results, but they will all significantly shorten the duration of your mortgage and lower the total interest paid over the duration of the loan.
Lump Sum Extra Payment
Some people can't manage extra payments. But remember that most mortgages will allow additional payments at any time. Whenever you get some extra cash, you can use this rule to pay an additional one-time payment toward your principal.
For example: five years after moving into your home, you receive a huge tax refund,a very large legacy, or a cash gift; , you could pay a portion of this money toward your mortgage loan principal, resulting in enormous savings and a shortened payback period. Unless the mortgage loan is very large, even a few thousand dollars applied early in the loan period can produce huge savings over the life of the loan.
Stepping Stone Mortgage can walk you At Stepping Stone Mortgage, we answer questions about interest-saving strategies every day. Give us a call: 5416833300.