Big Savings on Interest: Available to Anyone with a Mortgage
Paying consistent additional payments toward the principal yields singificant returns. You can do this in several ways. For many people,Perhaps the easiest way to organize this process is by making one extra payment a year. If you can't pay an extra whole payment in one month, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Another option is to pay half of your payment every two weeks. The effect here is that you make one additional monthly payment each year. These options differ a little in lowering the final payback amount and reducing payback length, but they will all significantly reduce 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. Keep in mind that almost all mortgages will permit you to pay extra on your principal at any point during repayment. You can benefit from this rule to pay down your principal when you get some extra money.
If, for example, you were to receive an unexpected windfall three years into your mortgage, you could apply this money toward your mortgage loan principal, which would result in enormous savings and a shortened loan period. Unless the loan is very large, even small amounts applied early can yield huge benefits over the life of the loan.
Contemporary Mortgage Services, Inc can walk you the mortgage process. Call us at 407-834-3377.
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