Additional Payments Yield Huge Savings

Paying regular extra payments toward the loan principal can yield big savings. You can accomplish this in various ways. For many people,Perhaps the simplest way to organize this process is by making one additional payment a year. However, some people can't swing this huge additional expense, so dividing a single additional payment into 12 additional monthly payments works too. Finally, you can pay a half payment every other week. These options differ slightly in lowering the total interest paid and shortening payback length, but each will significantly shorten the length of your mortgage and lower the total interest paid over the duration of the loan.

One-time Additional Payment

It may not be possible for you to pay down your principal every month or even every year. But it's important to note that most mortgages will allow you to make additional payments at any time. You can take advantage of this provision to pay extra on your mortgage principal when you come into extra money.

If, for example, you were to receive a surprise windfall five years into your mortgage, you could apply a portion of this money toward your loan principal, which would result in huge savings and a shorter payback period. Unless the loan is very large, even modest amounts applied early can yield huge benefits over the duration of the loan.

Home Pointe Mortgage Company can walk you Home Pointe Mortgage Company can answer questions about these interest savings and many others. Call us at 7702202800.