Save Big on your Mortgage Loan
Here's a simple trick to reduce the repayment period of your mortgage and save thousands of dollars in interest: Make additional payments that are applied toward your principal. People make this happen in several ways. Paying a single additional full payment once a year may be the easiest to track. However, some folks can't swing such an enormous extra payment, so dividing one additional payment into twelve additional monthly payments is a great option too. Finally, you can pay half of your mortgage payment every two weeks. Each of these options produces slightly different results, but they will all significantly shorten the length of your mortgage and lower the total interest you will pay over the duration of the loan.
Additional One-time payment
Some folks can't manage extra payments. Keep in mind that virtually all mortgages will allow you to make additional payments to your principal at any time. You can benefit from this rule to pay down your mortgage principal when you get some extra money. If, for example, you receive a surprise windfall four years into your mortgage, paying several thousand dollars into your home's principal will reduce the period of your loan and save enormously on mortgage interest paid over the duration of the mortgage loan. Unless the loan is quite large, even a few thousand dollars applied early in the loan period can yield huge savings over the duration of the loan.
Ward Kilduff Mortgage can walk you At Ward Kilduff Mortgage, we answer questions about money-saving strategies every day. Call us: (860) 658-7100.
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