Save Big on Your Mortgage
There's a simple trick to reduce the repayment period of your mortgage and save you thousands of dollars in interest: Make additional payments which are applied to your principal. Borrowers employ various techniques to accomplish this goal. Paying a single extra full payment once every year is perhaps the simplest to track. If you can't afford to 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 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 shorten the duration of your mortgage and lower the total interest paid over the duration of the loan.
One-time Additional Payment
Some borrowers can't manage extra payments. But you should remember that most mortgage contracts will allow additional principal payments at any time. Whenever you come into extra cash, you can use this provision to make an additional one-time payment toward principal.
If, for example, you were to receive a surprise windfall three years into your mortgage, you could pay this money toward your mortgage loan principal, which would result in enormous savings and a shortened loan period. For most loans, even a relatively modest amount, paid early in the mortgage, could offer huge savings in interest and duration of the loan.
Contemporary Mortgage Services, Inc can walk you Contemporary Mortgage Services, Inc can answer questions about these interest savings and many others. Call us at 407-834-3377.
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