Save Big on your Mortgage Loan
There's a simple trick to significantly reduce the length of your mortgage and save you thousands of dollars in interest: Make extra payments which apply to your loan principal. Borrowers pay more on principal by employing various techniques. For many people,Perhaps the easiest way to keep track is to make 1 extra mortgage payment per year. If you can't pay an extra whole payment in one month, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every two weeks. Each option yields different results, but each will significantly reduce the duration of your mortgage and lower the total interest paid over the duration of the loan.
One-time Additional 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 allow you to make additional payments at any time. You can take advantage of this rule to pay down your principal any time you get some extra money. If, for example, you receive a surprise windfall just a few years into your mortgage, you could pay a portion of this money toward your loan principal, resulting in significant savings and a shortened payback period. For most loans, even a relatively small amount, paid early in the loan period, could offer big savings in interest and duration of the loan.
Prime Capital Mortgage Corp can walk you through the pitfalls of getting a mortgage. Give us a call at 248-644-1200.
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