Huge Savings on Interest: Available to Anyone with a Mortgage
Here's a simple trick to reduce the repayment period of your mortgage and save you thousands over the course of your loan: Make extra payments which go to the principal. Borrowers can accomplish this in several ways. For many people,Perhaps the simplest way to organize this process is by making 1 additional mortgage payment a year. If you can't afford to pay an extra whole payment in one month, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every other week. Each of these options yields slightly different results, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
Some people can't manage extra payments. Remember that almost all mortgages will permit you to pay extra on your principal at any time. Whenever you come into unexpected cash, you can use this provision to pay an additional one-time payment toward principal.
If, for example, you were to receive a large gift or tax refund five years into your mortgage, paying a few thousand dollars into your home's principal will reduce the period of your loan and save enormously on mortgage interest paid over the life of the mortgage loan. Unless the mortgage loan is very large, even a few thousand dollars applied early can produce huge benefits over the duration of the loan.
Washingtonian Mortgage, LLC can walk you Washingtonian Mortgage, LLC can answer questions about these interest savings and many others. Give us a call at 410-451-2755.