Huge Savings on Interest: Available to Anyone
Here's a simple trick to reduce the repayment period of your mortgage and save thousands in interest: Make additional payments that apply to the principal. Borrowers can pay against principal by employing various techniques. For many people,Perhaps the easiest way to keep track is to make one extra mortgage payment per year. But many folks won't be able to pull off this huge additional expense, so splitting a single additional payment into 12 extra monthly payments works as well. Finally, you can commit to paying a half payment every other week. Each of these options produces different results, but each will significantly shorten the duration of your mortgage and lower the total interest you will pay 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. Remember that virtually all mortgages will allow you to make additional payments to your principal at any point during repayment. You can benefit from this rule to pay extra on your principal any time you get some extra money.
If, for example, you were to receive an unexpected windfall just a few years into your mortgage, you could pay a portion of this windfall toward your mortgage loan principal, which would result in huge savings and a shorter loan period. For most loans, even a relatively small amount, paid early enough in the loan period, could offer big savings in interest and length of the loan.
Alternative Mortgage Group can walk you the mortgage process. Call us: 561-395-4264.