Paying regular extra payments toward your principal can yield enormous savings. Borrowers can pay more on principal by employing various techniques. For many people,Perhaps the easiest way to organize this process is by making 1 extra payment a year. If you can't afford to pay an extra whole payment all at once, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can pay half of your mortgage payment every other week. These options differ a little in lowering the final payback amount and reducing payback length, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.
Additional One-time payment
Some folks just can't make extra payments. But it's important to note that most mortgage contracts will allow additional principal payments at any time. You can take advantage of this rule to pay extra on your principal when you come into extra money.
For example: five years after buying your home, you get a larger than expected tax refund,a large inheritance, or a non-taxable cash gift; , you could pay a portion of this windfall toward your loan principal, which would result in enormous savings and a shorter loan period. For most loans, even a modest amount, paid early enough in the mortgage, could offer big savings in interest and in the duration of the loan.
Ward Kilduff Mortgage can walk you At Ward Kilduff Mortgage, we answer questions about interest-saving strategies every day. Call us: (860) 658-7100.
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