Here's a simple trick to reduce the repayment period of your mortgage and save thousands of dollars in interest: Make extra payments which go toward your loan principal. You can do this using a few different techniques. Making a single additional full payment once every year is perhaps the easiest to arrange. But some folks won't be able to pull off this huge extra expense, so dividing one extra payment into twelve extra monthly payments is a fine option too. Another option is to pay half of your payment every two weeks. The effect here is that you make one additional monthly payment every year. Each option yields slightly different results, but they will all significantly reduce the length of your mortgage and lower your total interest paid.
Additional One-time payment
Some borrowers just can't make extra payments. Keep in mind that most mortgages will permit you to make additional payments to your principal at any point during repayment. You can take advantage of this provision to pay extra on your principal any time you come into extra money. For example: several years after moving into your home, you get a very large tax refund,a large inheritance, or a non-taxable cash gift; , investing several thousand dollars into your mortgage principal can shorten the repayment duration of your loan and save a huge amount on interest over the duration of the mortgage loan. For most loans, even a modest amount, paid early in the mortgage, could offer big savings in interest and duration of the loan.
Home Pointe Mortgage Company can walk you At Home Pointe Mortgage Company, we answer questions about money-saving strategies every day. Call us at 7702202800.