Additional Payments Provide Huge Mortgage Savings
Making regular extra payments toward your principal will provide singificant returns. Borrowers employ various techniques to accomplish this goal. Making one extra full payment once a year is probably the easiest to arrange. But some folks won't be able to pull off this huge extra expense, so dividing an extra payment into twelve extra monthly payments is a fine option too. Finally, you can pay a half payment every two weeks. These options differ a little in lowering the final payback amount and reducing payback length, but each will significantly shorten the length of your mortgage and lower the total interest paid over the life of the loan.
Additional One-time payment
Some people just can't make extra payments. Remember that almost all mortgages will allow you to make additional payments to your principal at any time. Any time you come into unexpected money, consider using this rule to pay an additional one-time payment toward mortgage principal.
If, for example, you receive an unexpected windfall just a few years into your mortgage, paying a few thousand dollars into your home's principal can reduce the repayment period of your loan and save a huge amount on interest over the life of the loan. For most loans, even a small amount, paid early enough in the loan period, could offer huge savings in interest and length of the loan.
Pacific Loan Brokers can walk you At Pacific Loan Brokers, we answer questions about interest-saving strategies almost every day. Call us: 877-310-6200.
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