Save Big on your Mortgage
Paying regular additional payments toward the principal balance will yield big savings. Borrowers can do this using a few different techniques. For many people,Perhaps the simplest way to organize this process is by making 1 extra payment per year. But many folks can't afford such an enormous additional expense, so splitting a single additional payment into twelve additional monthly payments works too. Finally, you can commit to paying a half payment every other week. These options differ a little in reducing the final payback amount and reducing payback length, but each will significantly shorten 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 remember that most mortgages allow you to make additional principal payments at any time. Any time you get some extra cash, you can use this provision to pay a one-time additional payment on mortgage principal. Here's an example: several years after moving into your home, you get a huge tax refund,a very large legacy, or a non-taxable cash gift; , you could pay this windfall toward your loan principal, resulting in huge savings and a shortened payback period. For most loans, even a modest amount, paid early enough in the mortgage, could offer big savings in interest and in the duration of the loan.
Real Property Finance can walk you At Real Property Finance, we answer questions about interest-saving strategies almost every day. Call us: 310-379-5997.
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