Save on your Mortgage Loan
Making regular extra payments on your principal can yield huge savings. People employ various techniques to meet this goal. Paying one additional full payment once per year is probably the easiest to track. Of course, many folks can't pull off such a large extra expense, so splitting an additional payment into 12 additional monthly payments is a fine option too. Finally, you can pay half of your mortgage payment every other week. Each of these options yields slightly different results, but they will all 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 more every month or even every year. Keep in mind that almost all mortgage contracts will permit you to make additional payments to your principal at any point during repayment. You can benefit from this provision to pay extra on your mortgage principal when you get some extra money. Here's an example: a few years after moving into your home, you receive 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 mortgage loan principal, resulting in significant savings and a shorter loan period. Unless the loan is quite large, even a few thousand dollars applied early can produce huge savings over the life of the loan.
Ward Kilduff Mortgage can walk you Ward Kilduff Mortgage has your mortgage answers. Call us at (860) 658-7100.
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