Huge Savings on Interest: Available to Anyone
Paying consistent additional payments on the principal can yield singificant savings. Borrowers make this happen in a few ways. For many people,Perhaps the simplest way to organize this process is by making one additional mortgage payment per year. Of course, many folks won't be able to swing such a large additional expense, so splitting a single additional payment into 12 extra monthly payments works too. Another option is to pay half of your payment every two weeks. The effect here is that you will make one additional monthly payment each year. Each option produces different results, but each will significantly shorten the duration of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
Some borrowers can't manage any extra payments. But it's important to note that most mortgages will allow you to make additional principal payments at any time. You can take advantage of this rule to pay extra on your mortgage principal any time you come into extra money.
For example: a few years after moving into your home, you receive a very large tax refund,a large inheritance, or a cash gift; , paying a few thousand dollars into your mortgage principal can significantly reduce the repayment duration of your loan and save enormously on interest paid over the duration of the loan. For most loans, even a relatively modest amount, paid early in the loan period, could offer huge savings in interest and in the duration of the loan.
Washingtonian Mortgage, LLC can walk you At Washingtonian Mortgage, LLC, we answer questions about money-saving strategies almost every day. Give us a call at 410-451-2755.