Mortgage Saving Tips
Paying consistent extra payments toward the principal will provide big returns. Borrowers use different methods to meet this goal. Paying 1 extra payment one time every year is perhaps the easiest to track. If you can't pay an additional whole payment in one month, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Another very popular option is to pay a half payment every other week. The result is you will make one additional monthly payment every year. These options differ slightly in reducing the final payback amount and shortening payback length, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.
Additional One-time payment
Some borrowers just can't make extra payments. Remember that virtually all mortgages will allow you to pay extra on your principal at any point during repayment. Any time you come into unexpected money, consider using this provision to make a one-time additional payment on principal. For example: several years after buying your home, you get a larger than expected tax refund,a large inheritance, or a cash gift; , investing a few thousand dollars into your mortgage principal will significantly reduce the repayment duration of your loan and save enormously on interest paid over the duration of the mortgage loan. For most loans, even a small amount, paid early enough in the mortgage, could offer big savings in interest and in the length of the loan.
Alternative Mortgage Group can walk you Alternative Mortgage Group can answer questions about these interest savings and many others. Call us: 561-395-4264.