Save on Your Mortgage
Here's a simple trick to significantly reduce the length of your mortgage and save you thousands in interest: Make extra payments which are applied toward the principal. People use different methods to meet this goal. For many people,Perhaps the easiest way to keep track is to make one extra mortgage payment per year. However, some folks won't be able to afford such a large extra payment, so dividing a single extra payment into 12 additional monthly payments works too. Finally, you can commit to paying half of your mortgage payment every other week. Each of these options yields different results, but they will all significantly reduce the length of your mortgage and lower your total interest paid.
One-time Additional Payment
Some borrowers just can't make extra payments. But remember that most mortgage contracts allow you to make additional payments at any time. You can benefit from this provision to pay down your mortgage principal when you get some extra money.
For example: several years after moving into your home, you receive a very large tax refund,a very large inheritance, or a non-taxable cash gift; , you could apply a portion of this windfall toward your loan principal, resulting in enormous savings and a shortened loan period. Unless the mortgage loan is quite large, even small amounts applied early can yield huge benefits over the life of the loan.
Wisdom Financial, Inc. can walk you through the pitfalls of getting a mortgage. Call us at 708.499.6088.