Save on your Mortgage Loan
Making consistent extra payments toward your principal balance will yield enormous savings. Borrowers can accomplish this in several ways. For many people,Perhaps the easiest way to keep track is to make one extra payment a year. If you can't pay an extra whole payment all at once, you can divide that payment by 12 and pay that additional amount monthly. Another popular option is to pay a half payment every other week. The effect here is that you make one additional monthly payment each year. Each option yields slightly different results, but they will all significantly shorten the duration of your mortgage and lower the total interest paid over the life of the loan.
Additional One-time payment
It may not be possible for you to pay down your principal every month or even every year. Keep in mind that virtually all mortgages will allow you to make additional payments to your principal at any time. Any time you get some unexpected money, consider using this rule to pay a one-time additional payment toward principal. If, for example, you were to receive a surprise windfall five years into your mortgage, investing a few thousand dollars into your mortgage principal can shorten the period of your loan and save a huge amount on interest over the duration of the loan. Unless the loan is quite large, even a few thousand dollars applied early can produce huge savings over the life of the loan.
Washingtonian Mortgage, LLC can walk you the mortgage process. Call us at 410-451-2755.