Save Big on Your Mortgage
Paying regular additional payments on your loan principal will yield singificant savings. Borrowers can accomplish this in several ways. Making 1 extra payment one time per year may be the simplest to arrange. However, many folks can't afford this huge extra expense, so dividing a single additional payment into twelve extra monthly payments works as well. Finally, you can commit to paying a half payment every other week. Each of these options produces different results, but each will significantly shorten the duration of your mortgage and lower the total interest paid over the duration of the loan.
Lump Sum Extra Payment
Some borrowers can't manage any extra payments. Keep in mind that almost all mortgage contracts will permit you to pay extra on your principal at any time. Any time you come into extra cash, consider using this rule to pay an additional one-time payment on mortgage principal.
Here's an example: several years after buying your home, you receive a larger than expected tax refund,a very large legacy, or a cash gift; , you could apply a portion of this money toward your loan principal, which would result in huge savings and a shortened payback period. Unless the loan is very large, even a few thousand dollars 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.
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