Huge Interest Savings: Available to Anyone with a Mortgage
Making regular extra payments on your loan principal will provide enormous savings. People make this happen in a few ways. For many people,Perhaps the simplest way to organize this process is to make one extra payment a year. But some folks will not be able to afford such an enormous additional payment, so splitting an extra payment into twelve extra monthly payments works too. Finally, you can pay a half payment every two weeks. Each of these options produces different results, but they will all significantly shorten the length of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
Some people 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 just a few years into your mortgage, paying several thousand dollars into your mortgage principal will significantly shorten the repayment period of your loan and save a huge amount on interest paid over the life of the loan. For most loans, even this relatively modest amount, paid early enough in the mortgage, could offer big savings in interest and in the length of the loan.
Ward Kilduff Mortgage can walk you through the pitfalls of getting a mortgage. Call us: (860) 658-7100.
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