Simple Ways to Save on Your Mortgage
Paying regular additional payments on the principal will provide big returns. Borrowers make this happen in a few different ways. Paying a single additional payment one time per year may be the simplest to track. But many people can't pull off such a large additional payment, so splitting an extra payment into twelve extra monthly payments is a great option too. Finally, you can pay half of your mortgage payment every other week. Each option produces different results, but each will significantly reduce the length of your mortgage and lower your total interest paid.
Lump-sum Additional Payment
It may not be possible for you to pay extra every month or even every year. But you should remember that most mortgage contracts will allow you to make additional principal payments at any time. Whenever you get some extra money, consider using this provision to make an additional one-time payment toward principal.
For example: several years after buying your home, you receive a larger than expected tax refund,a large legacy, or a cash gift; , paying several thousand dollars into your home's principal will reduce the repayment duration of your loan and save a huge amount on interest over the duration of the mortgage loan. For most loans, even a modest 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 Alternative Mortgage Group has your mortgage answers. Give us a call at 561-395-4264.