Save on your Mortgage
Paying consistent extra payments on your principal balance will provide singificant returns. Borrowers pay against principal in many different ways. Paying one additional payment one time per year is likely the easiest 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 write a check for that additional amount monthly. Another popular option is to pay half of your payment every two weeks. The effect here is that you will make one additional monthly payment every year. These options differ slightly in reducing the total interest paid and shortening payback length, but each will significantly shorten the duration of your mortgage and lower the total interest you will pay over the life of the loan.
One-time Additional Payment
Some borrowers just can't make extra payments. But you should remember that most mortgages allow you to make additional payments at any time. Any time you come into unexpected cash, you can use this rule to pay an additional one-time payment toward principal.
Here's an example: several years after buying your home, you receive a very large tax refund,a very large inheritance, or a non-taxable cash gift; , you could apply a portion of this windfall toward your mortgage loan principal, which would result in enormous savings and a shortened payback period. Unless the mortgage loan is very large, even small amounts applied early in the loan period can yield huge benefits over the duration of the loan.
Home Pointe Mortgage Company can walk you the mortgage process. Call us at 7702202800.