Mortgage Saving Tips
There's a trick to reduce the repayment period of your mortgage and save thousands of dollars in interest: Make additional payments that are applied to the principal. People employ various techniques to accomplish this goal. For many people,Perhaps the simplest way to organize this process is to make 1 extra mortgage payment a year. 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. Another popular option is to pay a half payment every two weeks. The result is you make one extra monthly payment every year. These options differ slightly in lowering the final payback amount and reducing 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.
Additional One-time payment
It may not be possible for you to pay more every month or even every year. But it's important to note that most mortgage contracts allow additional principal payments at any time. Any time you get some extra cash, you can use this rule to pay a one-time additional payment on mortgage principal. For example: several years after moving into your home, you receive a larger than expected tax refund,a large legacy, or a non-taxable cash gift; , you could pay this windfall toward your loan principal, resulting in huge savings and a shortened loan period. For most loans, even a modest amount, paid early enough in the mortgage, could offer big savings in interest and length of the loan.
Prime Capital Mortgage Corp can walk you At Prime Capital Mortgage Corp, we answer questions about money-saving strategies almost every day. Give us a call: 248-644-1200.
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