Mortgage Saving Tips
Paying consistent extra payments on your principal can yield singificant savings. Borrowers pay extra on principal by employing various techniques. Making a single extra full payment one time per year is likely the simplest to arrange. Of course, some folks will not be able to pull off such an enormous extra expense, so dividing a single additional payment into 12 additional monthly payments works too. Finally, you can commit to paying half of your mortgage payment every other week. Each of these options produces different results, but they will all significantly reduce the length of your mortgage and lower the total interest paid over the life of the loan.
Lump Sum Extra Payment
Some folks just can't make any extra payments. But remember that most mortgage contracts will allow additional payments at any time. Any time you get some extra money, you can use this rule to pay an additional one-time payment toward mortgage principal.
If, for example, you were to receive an unexpected windfall three years into your mortgage, you could pay a portion of this windfall toward your mortgage loan principal, resulting in enormous savings and a shortened loan period. Unless the loan is very large, even modest amounts applied early can produce huge benefits over the duration of the loan.
Trustin Mortgage Corporation can walk you At Trustin Mortgage Corporation, we answer questions about money-saving strategies almost every day. Give us a call at (302) 765-8089.
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