Save on Your Mortgage
Paying consistent extra payments toward the loan principal provides singificant returns. You pay more on principal by employing various techniques. Paying a single additional full payment once every year is probably the easiest to keep track of. Of course, some people won't be able to swing this huge additional expense, so dividing one extra payment into 12 extra monthly payments is a fine option too. Another popular option is to pay a half payment every other week. The result is you make one additional monthly payment every year. Each of these options produces different results, but each will significantly reduce the duration of your mortgage and lower the total interest paid over the duration of the loan.
Additional One-time payment
Some borrowers just can't make extra payments. Remember that almost all mortgages will allow you to make additional payments to your principal at any point during repayment. You can benefit from this provision to pay down your mortgage principal when you come into extra money. Here's an example: several years after buying your home, you receive a huge tax refund,a large legacy, or a cash gift; , paying a few thousand dollars into your mortgage principal can reduce the repayment duration of your loan and save enormously on interest over the life of the loan. For most loans, even a relatively small amount, paid early enough in the loan period, could offer big savings in interest and duration of the loan.
Contemporary Mortgage Services, Inc can walk you the mortgage process. Give us a call at 407-834-3377.
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