Save on your Mortgage Loan
Paying consistent additional payments on your principal balance will provide huge savings. You pay extra on principal by employing various techniques. Paying a single additional full payment once per year is likely the easiest to track. However, some folks won't be able to afford this huge extra expense, so splitting an extra payment into 12 extra monthly payments is a great option too. Finally, you can pay half of your mortgage payment every two weeks. Each of these options produces slightly different results, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.
Additional One-time payment
Some borrowers can't manage extra payments. Remember that most mortgages will permit you to make additional payments to your principal at any time. You can benefit from this rule to pay down your principal any time you come into extra money.
Here's an example: a few years after buying your home, you get a larger than expected tax refund,a very large legacy, or a cash gift; , you could pay a portion of this windfall toward your loan principal, resulting in enormous savings and a shorter payback period. For most loans, even this relatively modest 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 the mortgage process. Call us at 561-395-4264.