Big Interest Savings: Available to Anyone with a Mortgage
There's a trick to significantly reduce the length of your mortgage and save thousands in interest: Make extra payments which go toward your loan principal. You pay more on principal by employing various techniques. Paying a single additional payment one time a year is perhaps the easiest to keep track of. If you can't afford to pay an extra whole payment in one month, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can commit to paying a half payment every other week. These options differ slightly in lowering the final payback amount and shortening payback length, but they will all significantly reduce the length of your mortgage and lower your total interest paid.
Additional One-time payment
Some folks can't manage any extra payments. But remember that most mortgages allow you to make additional principal payments at any time. You can benefit from this rule to pay extra on your mortgage principal any time you come into extra money. If, for example, you were to receive a surprise windfall just a few years into your mortgage, investing several thousand dollars into your home's principal can reduce the repayment duration of your loan and save enormously on interest over the duration of the loan. For most loans, even this small amount, paid early in the loan period, could offer big savings in interest and in the duration of the loan.
Alternative Mortgage Group can walk you Alternative Mortgage Group can answer questions about these interest savings and many others. Call us at 561-395-4264.