Mortgage Saving Tips
Here's a simple trick to significantly reduce the length of your mortgage and save thousands of dollars over the course of your loan: Make extra payments which apply to your principal. People employ various techniques to accomplish this goal. Paying one additional full payment once per year is perhaps the simplest to arrange. However, many people can't swing such an enormous extra expense, so dividing a single additional payment into 12 extra monthly payments works too. Finally, you can pay half of your mortgage payment every two weeks. These options differ slightly in lowering the total interest paid and reducing payback length, but they will all significantly shorten the duration of your mortgage and lower the total interest you will pay over the life of the loan.
One-time Additional Payment
Some borrowers just can't make any extra payments. But remember that most mortgages allow additional payments at any time. You can benefit from this provision to pay extra on your mortgage principal any time you get some extra money. For example: several years after buying your home, you get a larger than expected tax refund,a large inheritance, or a cash gift; , investing a few thousand dollars into your home's principal will significantly reduce the duration of your loan and save a huge amount on interest paid over the duration of the mortgage loan. For most loans, even a small amount, paid early enough in the mortgage, 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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