Save Big on your Mortgage
Paying regular extra payments on the principal yields big savings. You pay extra on principal in various ways. Paying 1 additional full payment one time every year may be the easiest to track. However, many people will not be able to pull off this huge extra expense, so dividing an extra payment into 12 extra monthly payments works too. Another very popular option is to pay half of your payment every two weeks. The effect here is that you make one extra monthly payment each year. Each of these options produces slightly 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
It may not be possible for you to pay more every month or even every year. But you should remember that most mortgage contracts will allow additional payments at any time. You can take advantage of this provision to pay extra on your mortgage principal any time you get some extra money. If, for example, you were to receive a large gift or tax refund three years into your mortgage, investing several thousand dollars into your mortgage principal will significantly shorten the period of your loan and save a huge amount on interest paid over the duration of the loan. Unless the loan is quite large, even small amounts applied early in the loan period can produce huge benefits over the duration of the loan.
Washingtonian Mortgage, LLC can walk you the mortgage process. Call us at 4433365525.