Save on your Mortgage
Paying consistent extra payments on the loan principal yields big returns. People use different methods to meet this goal. For many people,Perhaps the simplest way to keep track is by making one additional payment every year. But many people won't be able to pull off such an enormous extra payment, so splitting one additional payment into twelve additional monthly payments works too. Finally, you can pay a half payment every other week. These options differ a little in lowering the total interest paid and shortening payback length, but each will significantly reduce the length of your mortgage and lower the total interest you will pay over the life of the loan.
Lump Sum Extra Payment
It may not be possible for you to pay extra every month or even every year. But you should remember that most mortgage contracts allow additional principal payments at any time. You can take advantage of this provision to pay down your principal any time you get some extra money. Here's an example: five years after moving into your home, you get a larger than expected tax refund,a large inheritance, or a non-taxable cash gift; , investing a few thousand dollars into your mortgage principal will significantly shorten the repayment period of your loan and save a huge amount on interest paid over the duration of the mortgage loan. Unless the loan is quite large, even modest amounts applied early can yield huge benefits over the duration of the loan.
Valley Savers Mortgage, LLC can walk you through the pitfalls of getting a mortgage. Call us: (602) 332-9544.
Do you have a question regarding a mortgage program?