Big Interest Savings: Available to Anyone with a Mortgage
There's a trick to significantly reduce the length of your mortgage and save you thousands over the course of your loan: Make extra payments which apply toward your principal. Borrowers use different methods to meet this goal. For many people,Perhaps the simplest way to keep track is to make 1 extra mortgage payment per year. 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 option is to pay half of your payment every other week. The effect here is that you make one additional monthly payment every year. These options differ slightly in reducing the total interest paid and shortening payback length, but they will all significantly reduce the length of your mortgage and lower your total interest paid.
Additional One-time payment
It may not be possible for you to pay down your principal every month or even every year. But you should remember that most mortgages will allow you to make additional payments at any time. You can benefit from this rule to pay extra on your mortgage principal any time you get some extra money.
If, for example, you receive a large gift or tax refund three years into your mortgage, you could pay a portion of this money toward your mortgage loan principal, which would result in enormous savings and a shorter payback period. For most loans, even this relatively small amount, paid early enough in the loan period, could offer huge savings in interest and in the duration of the loan.
Budica Financial Corporation can walk you At Budica Financial Corporation, we answer questions about interest-saving strategies almost every day. Give us a call at 9518404188.