Save on your Mortgage
Making consistent extra payments toward the loan principal provides singificant savings. People use different methods to meet this goal. For many people,Perhaps the easiest way to keep track is by making one extra mortgage payment per year. But many people won't be able to afford such a large extra payment, so splitting an extra payment into twelve extra monthly payments works too. Another popular option is to pay half of your payment every two weeks. The effect here is that you make one extra monthly payment each year. These options differ slightly in reducing the final payback amount and shortening payback length, but they will all significantly shorten the length of your mortgage and lower your total interest paid.
Lump-sum Additional Payment
It may not be possible for you to pay more every month or even every year. But you should remember that most mortgages allow additional payments at any time. You can benefit from this rule to pay down 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 inheritance, or a cash gift; , you could pay a portion of this money toward your loan principal, resulting in significant savings and a shortened payback period. For most loans, even this relatively modest amount, paid early in the loan period, could offer huge savings in interest and in 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 at (602) 332-9544.
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