Save Big on Your Mortgage
Paying regular extra payments toward the principal will provide enormous returns. People make this happen in a few ways. For many people,Perhaps the easiest way to keep track is to make one additional mortgage payment a year. If you can't afford to pay an extra whole payment all at once, 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 two weeks. The effect here is that you make one extra monthly payment in a year. Each of these options produces slightly different results, but each will significantly shorten the duration of your mortgage and lower your total interest paid.
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 will allow you to make additional principal payments at any time. You can benefit from this provision to pay down your principal any time you come into extra money.
If, for example, you were to receive an unexpected windfall five years into your mortgage, you could apply this windfall toward your loan principal, which would result in huge savings and a shorter payback period. Unless the mortgage loan is very large, even a few thousand dollars applied early in the loan period can yield huge benefits over the duration of the loan.
Prime Capital Mortgage Corp can walk you through the pitfalls of getting a mortgage. Call us: 248-644-1200.
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