Save on your Mortgage
There's a simple trick to significantly reduce the length of your mortgage and save thousands of dollars over the course of your loan: Make extra payments that apply toward your loan principal. Borrowers can accomplish this in several ways. For many people,Perhaps the easiest way to keep track is to make one additional payment per year. But many people will not be able to pull off such a large additional expense, so dividing an extra payment into 12 additional monthly payments is a fine option too. Finally, you can pay half of your mortgage payment every other week. Each of these options yields different results, but they will all significantly reduce the duration of your mortgage and lower the total interest paid over the duration of the loan.
Lump Sum Extra Payment
It may not be possible for you to pay more every month or even every year. But remember that most mortgage contracts will allow additional payments at any time. You can benefit from this provision to pay extra on your principal any time you come into extra money.
If, for example, you were to receive an unexpected windfall five years into your mortgage, investing a few thousand dollars into your mortgage principal can shorten the repayment duration of your loan and save a huge amount on interest over the duration of the loan. Unless the mortgage loan is quite large, even a few thousand dollars applied early in the loan period can yield huge benefits over the duration of the loan.
Alternative Mortgage Group can walk you Alternative Mortgage Group has your mortgage answers. Call us at 561-395-4264.