Save Big on Your Mortgage
Paying regular additional payments toward your loan principal can yield enormous returns. Borrowers pay extra in a few different ways. For many people,Perhaps the simplest way to organize this process is to make one extra mortgage payment per year. If you can't afford to pay an extra whole payment in one month, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Another option is to pay a half payment every two weeks. The result is you will make one additional monthly payment each year. These options differ slightly in reducing the final payback amount and shortening payback length, but they will all significantly shorten the length of your mortgage and lower the total interest you will pay over the life of the loan.
Lump Sum Extra Payment
Some folks just can't make any extra payments. Remember that almost all mortgages will allow you to make additional payments to your principal at any point during repayment. Any time you get some unexpected cash, consider using this provision to pay a one-time additional payment toward your principal.
Here's an example: several years after buying your home, you get a larger than expected tax refund,a large legacy, or a non-taxable cash gift; , investing a few thousand dollars into your mortgage principal will shorten the repayment duration of your loan and save enormously on mortgage interest paid over the duration of the loan. Unless the loan is very large, even a few thousand dollars applied early in the loan period can yield huge benefits over the life of the loan.
Ward Kilduff Mortgage can walk you Ward Kilduff Mortgage can answer questions about these interest savings and many others. Call us at (860) 658-7100.
Got a Question?
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.