Save on your Mortgage Loan
There's a trick to significantly reduce the length of your mortgage and save you thousands over the course of your loan: Make extra payments which apply toward the principal. You can pay extra on principal by employing various techniques. Making 1 extra payment one time a year is likely the easiest to keep track of. If you can't afford to pay an extra whole payment all at once, you can divide your payment by 12 and write a check for that additional amount monthly. Another popular option is to pay half of your payment every other week. The result is you make one extra monthly payment each year. Each option yields slightly different results, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
Some borrowers can't manage any extra payments. But remember that most mortgages will allow additional principal payments at any time. You can take advantage of this provision to pay extra on your mortgage principal when you come into extra money. For example: a few years after buying your home, you get a larger than expected tax refund,a very large legacy, or a cash gift; , investing several thousand dollars into your home's principal can reduce the period of your loan and save enormously on interest paid over the life of the loan. Unless the mortgage loan is very large, even small amounts applied early can produce huge savings over the duration of the loan.
Prime Capital Mortgage Corp can walk you the mortgage process. Call us: 248-644-1200.
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.