Huge Savings on Interest: Available to Anyone
Paying regular extra payments on the principal balance will provide enormous returns. People employ various techniques to accomplish this goal. Making a single additional payment once a year is perhaps the simplest to arrange. If you can't pay an extra whole payment all at once, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Finally, you can pay a half payment every two weeks. These options differ a little in reducing the final payback amount and reducing payback length, but they will all significantly shorten the length of your mortgage and lower the total interest paid over the duration of the loan.
One-time Additional Payment
Some folks just can't make any extra payments. Keep in mind that virtually all mortgage contracts will permit you to pay extra on your principal at any point during repayment. You can take advantage of this provision to pay extra on your mortgage principal when you come into extra money. If, for example, you were to receive an unexpected windfall five years into your mortgage, paying several thousand dollars into your home's principal will shorten the period of your loan and save a huge amount on interest over the life of the loan. Unless the mortgage loan is very large, even modest amounts applied early can produce huge savings over the duration of the loan.
Ward Kilduff Mortgage can walk you the mortgage process. Give us a call: (860) 658-7100.
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