Save on your Mortgage Loan
There's a simple trick to significantly reduce the length of your mortgage and save you thousands of dollars in interest: Make additional payments that go toward the loan principal. People accomplish this goal in several different ways. Making one extra payment one time every year is perhaps the simplest 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 write a check for that additional amount monthly. Another popular option is to pay a half payment every other week. The result is you make one extra monthly payment every year. These options differ a little in lowering the total interest paid and shortening payback length, but each will significantly shorten the length of your mortgage and lower your total interest paid.
Additional One-time payment
It may not be possible for you to pay down your principal every month or even every year. But remember that most mortgage contracts allow additional principal payments at any time. You can benefit from this provision to pay down your mortgage principal when you get some extra money. If, for example, you receive a very large gift or tax refund just a few years into your mortgage, paying a few thousand dollars into your home's principal will shorten the duration of your loan and save a huge amount on mortgage interest over the life of the loan. For most loans, even this relatively modest amount, paid early enough in the mortgage, could offer huge 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.