Making regular additional payments on the loan principal can yield enormous savings. People employ various techniques to accomplish this goal. For many people,Perhaps the easiest way to keep track is to make one additional mortgage payment per 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. Another popular option is to pay half of your payment every two weeks. The result is you will make one extra monthly payment each year. These options differ a little in reducing the final payback amount and shortening payback length, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.
Additional One-time payment
It may not be possible for you to pay extra every month or even every year. Remember that almost all mortgage contracts will permit you to pay extra on your principal at any time. Any time you come into unexpected money, consider using this rule to make a one-time additional payment on your mortgage principal. Here's an example: a few years after moving into your home, you receive a larger than expected tax refund,a large legacy, or a non-taxable cash gift; , you could apply a portion of this money toward your loan principal, resulting in significant savings and a shortened payback period. For most loans, even a relatively small amount, paid early in the loan period, could offer big savings in interest and in the length of the loan.
Ward Kilduff Mortgage can walk you Ward Kilduff Mortgage can answer questions about these interest savings and many others. Call us: (860) 658-7100.
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