Big Interest Savings: Available to Anyone
Making consistent extra payments on your loan principal will provide big returns. People make this happen in a few different ways. For many people,Perhaps the easiest way to organize this process is by making one extra payment every year. If you can't pay an additional whole payment all at once, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Another popular option is to pay a half payment every other week. The result is you will make one additional monthly payment each year. These options differ a little in reducing the final payback amount and shortening payback length, but they will all significantly shorten the duration of your mortgage and lower your total interest paid.
Additional One-time payment
Some borrowers can't manage any extra payments. But it's important to note that most mortgage contracts allow additional principal payments at any time. Whenever you come into unexpected money, you can use this rule to make a one-time additional payment on principal.
For example: several years after moving into your home, you get a huge tax refund,a very large legacy, or a cash gift; , you could pay a portion of this money toward your mortgage loan principal, resulting in huge savings and a shortened payback period. For most loans, even a modest amount, paid early in the loan period, could offer big savings in interest and duration of the loan.
Wisdom Financial, Inc. can walk you Wisdom Financial, Inc. has your mortgage answers. Call us at 708.499.6088.