Save Big on your Mortgage
Here's a simple trick to reduce the repayment period of your mortgage and save you thousands in interest: Make extra payments which apply to your loan principal. Borrowers use different methods to accomplish this goal. Paying one additional full payment one time every year is perhaps the easiest to track. If you can't afford to pay an extra whole payment all at once, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Another very popular option is to pay half of your payment every two weeks. The effect here is that you make one extra monthly payment every year. These options differ slightly in reducing the total interest paid and reducing payback length, but they will all significantly reduce the length of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
It may not be possible for you to pay extra every month or even every year. But remember that most mortgage contracts will allow you to make additional payments at any time. You can benefit from this rule to pay down your mortgage principal when you come into extra money. If, for example, you were to receive a surprise windfall five years into your mortgage, paying a few thousand dollars into your home's principal can shorten the repayment duration of your loan and save a huge amount on mortgage interest paid over the life of the loan. Unless the mortgage loan is very large, even a few thousand dollars applied early in the loan period can yield huge benefits over the life of the loan.
Curtis Mortgage LLC can walk you Curtis Mortgage LLC has your mortgage answers. Give us a call: 610-565-3600.