Save on your Mortgage Loan
Paying regular additional payments toward your principal balance will yield big returns. People accomplish this goal in several ways. For many people,Perhaps the simplest way to keep track is by making 1 additional payment every year. However, some folks can't swing such a large additional payment, so splitting one extra payment into twelve extra monthly payments works too. Finally, you can commit to paying half of your mortgage payment every other week. Each of these options yields slightly different results, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.
Additional One-time payment
Some folks just can't make any extra payments. Remember that almost all mortgages will permit you to make additional payments to your principal at any time. Whenever you get some unexpected cash, consider using this provision to pay a one-time additional payment toward your principal.
If, for example, you receive a large gift or tax refund three years into your mortgage, investing several thousand dollars into your mortgage principal can significantly reduce the repayment duration of your loan and save a huge amount on mortgage interest paid over the life of the loan. 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.
Mario Vega can walk you through the pitfalls of getting a mortgage. Give us a call: 877-310-6200.
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