Huge Interest Savings: Available to Anyone with a Mortgage
Paying consistent additional payments toward the principal balance will provide enormous savings. Borrowers can do this in several ways. For many people,Perhaps the simplest way to organize this process is by making one additional payment per year. However, some people will not be able to pull off such a large extra payment, so splitting one additional payment into twelve extra monthly payments works as well. Another popular option is to pay half of your payment every two weeks. The result is you make one additional monthly payment in a year. These options differ slightly in lowering the final payback amount and reducing payback length, but each will significantly reduce the length of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
It may not be possible for you to pay down your principal every month or even every year. But you should remember that most mortgage contracts will allow additional principal payments at any time. Whenever you get some unexpected money, consider using this rule to make a one-time additional payment on principal. If, for example, you receive a surprise windfall just a few years into your mortgage, paying a few thousand dollars into your home's principal will significantly reduce the repayment period of your loan and save a huge amount on mortgage interest over the life of the loan. Unless the loan is very large, even modest amounts applied early 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. Give us a call at 708.499.6088.