Huge Savings on Interest: Available to Anyone with a Mortgage
There's a simple trick to significantly reduce the length of your mortgage and save you thousands of dollars over the course of your loan: Make additional payments which are applied toward your principal. People use different methods to accomplish this goal. Paying 1 additional full payment one time every year is probably the simplest to arrange. If you can't pay an extra whole payment in one month, you can divide your payment by 12 and write a check for that additional amount monthly. Another very popular option is to pay half of your payment every other week. The effect here is that you will make one extra monthly payment every year. Each option yields different results, but each will significantly shorten the length of your mortgage and lower your total interest paid.
One-time Additional Payment
It may not be possible for you to pay down your principal every month or even every year. Keep in mind that almost all mortgage contracts will permit you to pay extra on your principal at any time. Whenever you come into extra money, consider using this provision to pay a one-time additional payment toward your mortgage principal.
Here's an example: five years after buying your home, you receive a very large tax refund,a very large legacy, or a non-taxable cash gift; , you could pay a portion of this money toward your loan principal, resulting in huge savings and a shortened payback period. Unless the mortgage loan is quite large, even modest amounts applied early can produce huge benefits over the life of the loan.
Prime Capital Mortgage Corp can walk you Prime Capital Mortgage Corp can answer questions about these interest savings and many others. Give us a call: 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.