Making consistent extra payments on your loan principal will yield enormous returns. People accomplish this goal in a few different ways. For many people,Perhaps the simplest way to organize this process is by making 1 additional payment per year. If you can't afford to pay an additional whole payment in one month, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can pay half of your mortgage payment every two weeks. These options differ slightly in lowering the final payback amount and reducing payback length, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.
One-time Additional Payment
Some borrowers just can't make extra payments. But it's important to note that most mortgage contracts allow you to make additional principal payments at any time. Any time you come into unexpected cash, consider using this provision to pay an additional one-time payment on principal.
For example: five years after buying your home, you get a very large tax refund,a large legacy, or a non-taxable cash gift; , you could apply this windfall toward your mortgage loan principal, which would result in significant savings and a shorter loan period. Unless the mortgage loan is quite large, even a few thousand dollars applied early in the loan period can produce huge savings over the duration of the loan.
Trustin Mortgage, LLC can walk you Trustin Mortgage, LLC can answer questions about these interest savings and many others. Call us: (302) 765-8089.
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