Simple Ways to Save on Your Mortgage
Making regular additional payments toward the principal balance will provide huge returns. Borrowers employ various techniques to meet this goal. Paying one extra full payment one time per year is probably the simplest to track. If you can't afford to pay an additional whole payment in one month, you can divide your payment by 12 and pay that additional amount monthly. Finally, you can pay half of your mortgage payment every two weeks. These options differ slightly in reducing the total interest paid and reducing payback length, but they will all 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 down your principal every month or even every year. But it's important to note that most mortgage contracts allow additional payments at any time. You can benefit from this rule to pay down your principal when you come into extra money.
If, for example, you were to receive an unexpected windfall just a few years into your mortgage, investing several thousand dollars into your home's principal will reduce the duration of your loan and save a huge amount on mortgage interest over the duration of the mortgage loan. Unless the mortgage loan is quite large, even modest amounts applied early in the loan period can yield huge savings over the life of the loan.
Prime Capital Mortgage Corp can walk you At Prime Capital Mortgage Corp, we answer questions about interest-saving strategies every day. Call us: 248-644-1200.
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