Save Big on Your Mortgage
Here's a simple trick to significantly reduce the length of your mortgage and save you thousands over the course of your loan: Make extra payments which apply to your loan principal. Borrowers can pay extra on principal by employing various techniques. Making one extra payment once per year may be the simplest to keep track of. Of course, some folks will not be able to pull off such a large additional payment, so dividing an additional payment into 12 extra monthly payments is a great option too. Another option is to pay half of your payment every two weeks. The result is you will make one additional monthly payment each year. Each of these options yields slightly different results, but each will significantly shorten the duration of your mortgage and lower the total interest you will pay over the life of the loan.
One-time Additional Payment
Some borrowers can't manage any extra payments. But it's important to note that most mortgages will allow additional payments at any time. Any time you get some unexpected money, you can use this provision to pay a one-time additional payment toward your mortgage principal. For example: a few years after buying your home, you receive a very large tax refund,a very large inheritance, or a cash gift; , investing several thousand dollars into your mortgage principal will reduce the repayment duration of your loan and save a huge amount on mortgage interest paid over the life of the loan. For most loans, even this small amount, paid early in the mortgage, could offer huge savings in interest and in the duration of the loan.
Alternative Mortgage Group can walk you through the pitfalls of getting a mortgage. Call us: 561-395-4264.