Making consistent additional payments on the loan principal will yield enormous savings. You can do this in several ways. For many people,Perhaps the easiest way to organize this process is by making one additional payment every year. However, many folks won't be able to swing such an enormous additional payment, so splitting a single additional payment into 12 extra monthly payments is a great option too. Another popular option is to pay a half payment every other week. The result is you make one extra monthly payment each year. These options differ slightly in lowering 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.
Lump Sum Extra Payment
Some people just can't make any extra payments. But you should remember that most mortgage contracts will allow additional payments at any time. Whenever you come into unexpected money, consider using this provision to make an additional one-time payment toward your mortgage principal.
For example: five years after moving into your home, you receive a huge tax refund,a large inheritance, or a cash gift; , you could pay a portion of this windfall toward your mortgage loan principal, resulting in huge savings and a shorter loan period. Unless the loan is very large, even modest amounts applied early can produce huge savings over the duration of the loan.
Prime Capital Mortgage Corp can walk you Prime Capital Mortgage Corp has your mortgage answers. Call us at 248-644-1200.
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