Save Big on Your Mortgage
Paying consistent extra payments toward your loan principal can yield enormous returns. Borrowers can pay more on principal in various ways. For many people,Perhaps the simplest way to keep track is by making one extra payment per year. But many folks will not be able to afford this huge extra expense, so dividing a single extra payment into twelve extra monthly payments works too. Finally, you can pay half of your mortgage payment every two weeks. These options differ a little in lowering the total interest paid and shortening payback length, but they will all significantly reduce the length of your mortgage and lower your total interest paid.
Additional One-time payment
Some folks can't manage any extra payments. Keep in mind that most mortgages will permit you to make additional payments to your principal at any point during repayment. You can benefit from this rule to pay extra on your principal when you come into extra money. If, for example, you were to receive a large gift or tax refund three years into your mortgage, you could apply this money toward your loan principal, which would result in significant savings and a shorter loan period. Unless the mortgage loan is quite large, even a few thousand dollars applied early in the loan period can yield huge benefits over the duration of the loan.
Wisdom Financial, Inc. can walk you Wisdom Financial, Inc. can answer questions about these interest savings and many others. Call us: 708.499.6088.