Huge Savings on Interest: Available to Anyone

There's a simple trick to reduce the repayment period of your mortgage and save you thousands over the course of your loan: Make extra payments that apply to your loan principal. You can accomplish this in various ways. Paying 1 extra full payment once a year may be the simplest to track. However, many folks can't swing this huge additional payment, so dividing a single additional payment into twelve additional monthly payments is a great option too. Another very popular option is to pay half of your payment every two weeks. The effect here is that you will make one extra monthly payment each year. These options differ slightly in reducing the total interest paid and reducing payback length, but each will significantly reduce the length of your mortgage and lower the total interest paid over the life of the loan.

Lump Sum Extra Payment

Some borrowers can't manage extra payments. But it's important to note that most mortgages allow you to make additional principal payments at any time. You can benefit from this provision to pay extra on your principal when you get some extra money.

For example: five years after moving into your home, you receive a larger than expected 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 huge savings and a shorter payback period. Unless the mortgage loan is quite large, even a few thousand dollars applied early can yield huge savings over the duration of the loan.

Budica Financial Corporation can walk you Budica Financial Corporation can answer questions about these interest savings and many others. Call us: 9518404188.