Save on your Mortgage Loan
Here's a simple trick to significantly reduce the length of your mortgage and save you thousands in interest: Make extra payments which go to the loan principal. People use different methods to meet this goal. For many people,Perhaps the easiest way to organize this process is by making 1 extra payment per year. But many folks can't afford this huge additional expense, so splitting an additional payment into twelve extra monthly payments is a great option too. Finally, you can pay a half payment every other week. Each of these options produces slightly different results, but each will significantly shorten the duration of your mortgage and lower your total interest paid.
Lump-sum Additional Payment
It may not be possible for you to pay down your principal every month or even every year. Remember that almost all mortgages will permit you to make additional payments to your principal at any time. Whenever you get some unexpected cash, you can use this rule to make a one-time additional payment on your mortgage principal. If, for example, you receive a surprise windfall five years into your mortgage, you could apply this windfall toward your loan principal, resulting in enormous savings and a shorter loan period. For most loans, even a relatively modest amount, paid early enough in the mortgage, could offer huge savings in interest and in the duration of the loan.
Saab Mortgage can walk you through the pitfalls of getting a mortgage. Call us: 703-288-0777.
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