Additional Payments Yield Huge Mortgage Savings
Paying consistent additional payments toward your principal balance will yield big savings. People use different methods to meet this goal. For many people,Perhaps the easiest way to keep track is to make one extra mortgage payment per year. If you can't afford to pay an additional whole payment in one month, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Finally, you can commit to paying a half payment every other week. Each of these options produces different results, but each will significantly reduce the length of your mortgage and lower the total interest paid over the duration of the loan.
Additional One-time payment
It may not be possible for you to pay extra every month or even every year. Keep in mind that most mortgage contracts will allow you to pay extra on your principal at any point during repayment. You can benefit from this rule to pay extra on your mortgage principal when you get some extra money.
If, for example, you were to receive a surprise windfall four years into your mortgage, paying several thousand dollars into your home's principal can significantly reduce the repayment duration of your loan and save a huge amount on mortgage interest over the duration of the loan. Unless the loan is very large, even modest amounts applied early can produce huge benefits over the duration of the loan.
Alternative Mortgage Group can walk you At Alternative Mortgage Group, we answer questions about money-saving strategies almost every day. Call us: 561-395-4264.