Save Big on your Mortgage Loan
Making regular additional payments toward the principal balance yields enormous savings. You can do this using a few different techniques. Paying 1 extra full payment once every year is perhaps the simplest to arrange. If you can't afford to pay an extra whole payment in one month, you can divide that payment by 12 and pay that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every two weeks. These options differ a little in reducing the total interest paid and shortening payback length, but each will significantly shorten the length of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
Some folks can't manage extra payments. Keep in mind that virtually all mortgage contracts will allow you to make additional payments to your principal at any point during repayment. Whenever you get some extra money, consider using this rule to pay a one-time additional payment on your mortgage principal.
If, for example, you receive an unexpected windfall just a few years into your mortgage, you could pay a portion of this money toward your loan principal, resulting in enormous savings and a shortened loan period. For most loans, even a relatively small amount, paid early enough in the loan period, could offer big savings in interest and duration of the loan.
Prime Capital Mortgage Corp can walk you Prime Capital Mortgage Corp can answer questions about these interest savings and many others. Call us at 248-644-1200.
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