Huge Savings on Interest: Available to Anyone
There's a trick to reduce the repayment period of your mortgage and save thousands of dollars over the course of your loan: Make additional payments which apply toward the loan principal. People employ various techniques to accomplish this goal. Paying one extra payment one time per year is likely the easiest to track. 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 very popular option is to pay half of your payment every other week. The effect here is that you make one additional monthly payment each year. These options differ a little in reducing the final payback amount and reducing payback length, but they will all significantly shorten the length of your mortgage and lower your total interest paid.
Additional One-time payment
Some folks just can't make any extra payments. Keep in mind that almost all mortgage contracts will allow you to make additional payments to your principal at any point during repayment. You can benefit from this rule to pay down your principal any time you come into extra money. For example: a few years after moving into your home, you get a very large tax refund,a very large legacy, or a cash gift; , you could apply this money toward your loan principal, which would result in huge savings and a shortened loan period. For most loans, even a small amount, paid early enough in the mortgage, could offer huge savings in interest and length of the loan.
Wisdom Financial, Inc. can walk you the mortgage process. Call us: 708.499.6088.