Mortgage Savings Tips
There's a trick to reduce the repayment period of your mortgage and save thousands of dollars over the course of your loan: Make additional payments that go to your principal. You can accomplish this in various ways. Making a single extra payment once every year is probably the easiest to arrange. If you can't pay an extra whole payment in one month, you can divide that payment by 12 and write a check for that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every other week. These options differ slightly in lowering the final payback amount and reducing payback length, but each will significantly shorten the length of your mortgage and lower your total interest paid.
Additional One-time payment
Some borrowers can't manage any extra payments. Keep in mind that virtually all mortgage contracts will permit you to pay extra on your principal at any time. Whenever you get some unexpected cash, you can use this rule to make a one-time additional payment on mortgage principal.
For example: five years after buying your home, you receive a very large tax refund,a large inheritance, or a cash gift; , you could pay a portion of this windfall toward your mortgage loan principal, resulting in enormous savings and a shortened payback period. For most loans, even a modest 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 through the pitfalls of getting a mortgage. Give us a call at 561-395-4264.