Big Interest Savings: Available to Anyone with a Mortgage
There's a trick to reduce the repayment period of your mortgage and save you thousands over the course of your loan: Make extra payments that go toward your loan principal. You can do this using a few different techniques. For many people,Perhaps the easiest way to organize this process is by making 1 additional mortgage payment per year. Of course, many folks won't be able to pull off such a large additional expense, so splitting one additional payment into twelve extra monthly payments is a great option too. Finally, you can commit to paying a half payment every other week. Each of these options yields different results, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.
Lump Sum Extra 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 mortgages will allow additional payments at any time. Whenever you get some unexpected money, you can use this rule to pay a one-time additional payment toward your mortgage principal.
If, for example, you receive a very large gift or tax refund five years into your mortgage, you could apply a portion of this money toward your loan principal, resulting in enormous savings and a shortened loan period. Unless the mortgage loan is quite large, even a few thousand dollars applied early in the loan period can yield huge savings over the 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. Give us a call: 248-644-1200.
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