Huge Interest Savings: Available to Anyone

Paying regular extra payments on your loan principal provides singificant returns. Borrowers make this happen in several different ways. Making 1 extra payment one time every year may be the easiest to arrange. If you can't afford to pay an extra whole payment all at once, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Another popular option is to pay half of your payment every other week. The result is you make one additional monthly payment every year. These options differ slightly in lowering the final payback amount and reducing payback length, but they will all significantly shorten the length of your mortgage and lower the total interest paid over the duration of the loan.

Additional One-time payment

It may not be possible for you to pay extra every month or even every year. But remember that most mortgages will allow you to make additional principal payments at any time. Any time you get some extra money, consider using this provision to pay an additional one-time payment toward mortgage principal. For example: five years after buying your home, you receive a very large tax refund,a very large legacy, or a non-taxable cash gift; , investing a few thousand dollars into your mortgage principal can reduce the repayment duration of your loan and save enormously on mortgage interest paid over the duration of the mortgage loan. For most loans, even this small amount, paid early in the loan period, could offer huge savings in interest and in the length of the loan.

Budica Financial Corporation can walk you the mortgage process. Call us at 9518404188.