Huge Savings on Interest: Available to Anyone with a Mortgage
Paying consistent additional payments on the loan principal can yield huge returns. You can do this in several ways. Paying a single additional payment once per year is likely the simplest to arrange. If you can't pay an additional whole payment all at once, you can split that large amount into 12 smaller payments 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 reducing the final payback amount and reducing payback length, but each will significantly reduce the length of your mortgage and lower the total interest you will pay over the duration of the loan.
One-time Additional Payment
It may not be possible for you to pay extra every month or even every year. Keep in mind that almost all mortgage contracts will allow you to make additional payments to your principal at any time. You can take advantage of this provision to pay down your principal when you get some extra money. If, for example, you were to receive an unexpected windfall three years into your mortgage, you could apply a portion of this money toward your mortgage loan principal, which would result in significant savings and a shortened payback period. Unless the loan is very large, even small amounts applied early in the loan period can yield huge savings over the duration of the loan.
Alternative Mortgage Group can walk you Alternative Mortgage Group can answer questions about these interest savings and many others. Give us a call: 561-395-4264.