There's a trick to significantly reduce the length of your mortgage and save thousands of dollars over the course of your loan: Make additional payments which apply to the principal. Borrowers pay extra in a few ways. For many people,Perhaps the easiest way to keep track is by making 1 extra payment per year. If you can't pay an additional whole payment all at once, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can commit to paying a half payment every two weeks. Each option yields slightly different results, but each will significantly shorten the length of your mortgage and lower your total interest paid.
Additional One-time payment
Some folks just can't make extra payments. But it's important to note that most mortgage contracts allow additional payments at any time. You can benefit from this provision to pay extra on your mortgage principal when you get some extra money. Here's an example: five years after moving into your home, you receive a very large tax refund,a very large legacy, or a cash gift; , you could pay this money toward your loan principal, resulting in huge savings and a shorter loan period. Unless the mortgage loan is very large, even modest amounts applied early can produce huge savings over the duration of the loan.
Valley Savers Mortgage, LLC can walk you the mortgage process. Call us: (602) 332-9544.
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