Simple Ways to Save on Your Mortgage
Making regular additional payments on the principal balance can yield huge savings. People employ various techniques to accomplish this goal. Making a single extra payment once a year is perhaps the easiest to track. But many folks will not be able to swing this huge additional payment, so dividing a single additional payment into 12 additional monthly payments is a great option too. Another option is to pay a half payment every other week. The effect here is that you will make one extra monthly payment each year. These options differ slightly in reducing the final payback amount and reducing payback length, but they will all significantly shorten the duration of your mortgage and lower your total interest paid.
One-time Additional Payment
It may not be possible for you to pay extra every month or even every year. Remember that almost all mortgage contracts will allow you to make additional payments to your principal at any point during repayment. Any time you come into extra money, you can use this rule to make an additional one-time payment toward principal. For example: several years after buying your home, you get a larger than expected tax refund,a very large inheritance, or a non-taxable cash gift; , investing a few thousand dollars into your mortgage principal will shorten the repayment period of your loan and save enormously on mortgage interest over the duration of the mortgage loan. Unless the loan is very large, even a few thousand dollars applied early can yield huge savings over the duration of the loan.
Ward Kilduff Mortgage can walk you Ward Kilduff Mortgage has your mortgage answers. Call us: (860) 658-7100.
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