Huge Savings on Interest: Available to Anyone with a Mortgage
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Paying regular additional payments on your loan principal can yield huge returns. Borrowers pay more on principal by employing various techniques. Making 1 additional payment one time per year is probably the easiest to track. However, some people will not be able to afford this huge additional expense, so dividing a single additional payment into twelve additional monthly payments is a fine option too. Another very popular option is to pay a half payment every two weeks. The result is you make one additional monthly payment every year. These options differ a little in lowering the final payback amount and shortening payback length, but they will all significantly reduce the length of your mortgage and lower the total interest paid over the duration of the loan.
Lump-sum Additional Payment
It may not be possible for you to pay down your principal every month or even every year. But it's important to note that most mortgages allow you to make additional principal payments at any time. You can benefit from this rule to pay extra on your principal any time you get some extra money. If, for example, you were to receive a surprise windfall just a few years into your mortgage, paying several thousand dollars into your mortgage principal can reduce the repayment period of your loan and save enormously on mortgage interest over the duration of the mortgage loan. For most loans, even a small amount, paid early in the loan period, could offer big savings in interest and in the length of the loan.
At City View Group, we answer questions about interest-saving strategies every day. Give us a call at 7028359202.
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