Big Interest Savings: Available to Anyone
Here's a simple trick to reduce the repayment period of your mortgage and save you thousands in interest: Make extra payments which apply to your loan principal. Borrowers pay extra in a few different ways. Paying 1 additional payment once every year is probably the simplest to keep track of. Of course, some people will not be able to pull off such a large extra expense, so splitting one extra payment into twelve additional monthly payments is a fine option too. Another popular option is to pay half of your payment every two weeks. The result is you make one extra monthly payment every year. Each option produces slightly different results, but they will all significantly reduce the length of your mortgage and lower the total interest you will pay over the life of the loan.
Additional One-time payment
Some folks can't manage extra payments. But remember that most mortgage contracts allow additional payments at any time. Whenever you get some extra money, you can use this rule to pay an additional one-time payment toward your mortgage principal. For example: several years after moving into your home, you receive a huge tax refund,a very large inheritance, or a non-taxable cash gift; , paying a few thousand dollars into your mortgage principal can shorten the period of your loan and save a huge amount on mortgage interest paid over the duration of the loan. Unless the mortgage loan is very large, even modest amounts applied early in the loan period can yield huge benefits over the life of the loan.
Alternative Mortgage Group can walk you through the pitfalls of getting a mortgage. Call us at 561-395-4264.