Huge Interest Savings: Available to Anyone with a Mortgage
There's a simple trick to significantly reduce the length of your mortgage and save you thousands of dollars over the course of your loan: Make extra payments which apply toward the principal. Borrowers use different methods to meet this goal. For many people,Perhaps the simplest way to organize this process is by making 1 additional mortgage payment per year. But some folks won't be able to swing such an enormous additional payment, so splitting one additional payment into twelve additional monthly payments is a fine option too. Another option is to pay a half payment every two weeks. The effect here is that you make one extra monthly payment every year. These options differ a little in reducing the final payback amount and shortening payback length, but they will all significantly reduce the duration of your mortgage and lower the total interest you will pay over the life of the loan.
Lump Sum Extra Payment
It may not be possible for you to pay down your principal every month or even every year. Keep in mind that almost all mortgages will allow you to make additional payments to your principal at any time. You can benefit from this provision to pay down your mortgage principal any time you get some extra money. If, for example, you were to receive a surprise windfall just a few years into your mortgage, you could apply this windfall toward your loan principal, resulting in enormous savings and a shortened loan period. Unless the mortgage loan is quite large, even modest amounts applied early can produce huge benefits over the duration of the loan.
Cal Coast Financial Corp can walk you At Cal Coast Financial Corp, we answer questions about money-saving strategies every day. Give us a call at (510) 683-9850.
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