Additional Payments Provide Big Mortgage Savings
Making regular additional payments on your principal will yield huge returns. You pay more on principal by employing various techniques. For many people,Perhaps the easiest way to organize this process is by making 1 extra payment every year. However, many folks won't be able to pull off this huge extra expense, so splitting an extra payment into twelve extra monthly payments works as well. Another very popular option is to pay a half payment every two weeks. The result is you will make one extra monthly payment in a year. These options differ slightly in reducing the total interest paid and shortening payback length, but each will significantly shorten the length of your mortgage and lower the total interest you will pay over the duration of the loan.
Lump Sum Extra Payment
Some people can't manage any extra payments. Remember that almost all mortgages will permit you to pay extra on your principal at any time. You can benefit from this rule to pay extra on your mortgage principal when you get some extra money. For example: five years after buying your home, you get a very large tax refund,a large legacy, or a non-taxable cash gift; , you could pay a portion of this windfall toward your mortgage loan principal, which would result in significant savings and a shortened loan period. Unless the mortgage loan is very large, even a few thousand dollars applied early in the loan period can yield huge benefits over the duration of the loan.
Valley Savers Mortgage, LLC can walk you Valley Savers Mortgage, LLC can answer questions about these interest savings and many others. Give us a call: (602) 332-9544.
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