Save Big on your Mortgage Loan
Paying regular extra payments on your principal balance provides huge returns. Borrowers pay against principal in various ways. For many people,Perhaps the easiest way to organize this process is by making 1 extra mortgage payment every year. However, some people won't be able to afford such an enormous additional payment, so dividing an extra payment into 12 extra monthly payments is a fine option too. Another popular option is to pay a half payment every two weeks. The result is you make one additional monthly payment every year. Each of these options yields slightly different results, but each will significantly reduce the length of your mortgage and lower the total interest you will pay over the duration of the loan.
Lump Sum Extra Payment
Some borrowers just can't make any extra payments. But remember that most mortgages will allow additional payments at any time. You can benefit from this rule to pay down your mortgage principal any time you come into extra money. If, for example, you receive a large gift or tax refund three years into your mortgage, investing a few thousand dollars into your mortgage principal can shorten the repayment duration of your loan and save enormously on interest over the duration of the loan. For most loans, even a modest amount, paid early enough in the mortgage, could offer big savings in interest and in the length of the loan.
MortgageMax can walk you At MortgageMax, we answer questions about money-saving strategies every day. Call us: (303) 443-5566.
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