Huge Interest Savings: Available to Anyone
There's a simple trick to significantly reduce the length of your mortgage and save thousands of dollars over the course of your loan: Make extra payments which are applied toward your loan principal. Borrowers pay more on principal by employing various techniques. Paying 1 additional payment once every year may be the simplest to arrange. If you can't afford to pay an additional whole payment all at once, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can commit to paying a half payment every other week. Each option produces slightly different results, but they will all significantly shorten the duration of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
Some people can't manage extra payments. But remember that most mortgages allow additional payments at any time. Whenever you come into extra cash, consider using this provision to pay an additional one-time payment toward your principal. For example: five years after buying your home, you receive a very large tax refund,a very large inheritance, or a cash gift; , you could apply a portion of this windfall toward your loan principal, which would result in huge savings and a shorter loan period. For most loans, even this relatively modest amount, paid early enough in the loan period, could offer huge savings in interest and length of the loan.
Saab Mortgage can walk you At Saab Mortgage, we answer questions about money-saving strategies every day. Give us a call: 703-288-0777.
Do you have a question regarding a mortgage program?