Huge Savings on Interest: Available to Anyone with a Mortgage
Here's a simple trick to significantly reduce the length of your mortgage and save you thousands over the course of your loan: Make additional payments that apply to your principal. You can do this in various ways. Making a single extra full payment once every year is perhaps the simplest to keep track of. 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 write a check for that additional amount monthly. Finally, you can pay a half payment every other week. Each of these options produces different results, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
It may not be possible for you to pay extra every month or even every year. But you should remember that most mortgages will allow additional payments at any time. You can benefit from this provision to pay down your principal any time you come into extra money. Here's an example: several years after buying your home, you get a huge tax refund,a large legacy, or a non-taxable cash gift; , paying a few thousand dollars into your home's principal will significantly reduce the period of your loan and save enormously on mortgage interest paid over the duration of the loan. For most loans, even a small amount, paid early in the mortgage, could offer big savings in interest and length of the loan.
Mario Vega can walk you through the pitfalls of getting a mortgage. Give us a call: 877-310-6200.
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