Save on your Mortgage Loan
Here'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 additional payments that go to your loan principal. You can do this using a few different techniques. For many people,Perhaps the easiest way to keep track is by making one additional mortgage payment every year. If you can't pay an extra whole payment in one month, you can divide that payment by 12 and pay that additional amount monthly. Finally, you can pay a half payment every two weeks. These options differ slightly in lowering the final payback amount and shortening payback length, but they will all significantly shorten the length of your mortgage and lower your total interest paid.
Additional One-time payment
Some borrowers can't manage any extra payments. Keep in mind that most mortgages will permit you to pay extra on your principal at any point during repayment. Whenever you get some extra money, consider using this rule to make a one-time additional payment on your principal. If, for example, you receive a very large gift or tax refund three years into your mortgage, investing several thousand dollars into your home's principal can reduce the duration of your loan and save enormously on mortgage interest over the duration of the loan. Unless the mortgage loan is quite large, even a few thousand dollars applied early can yield huge savings over the duration of the loan.
Cal Coast Financial Corp can walk you through the pitfalls of getting a mortgage. Call us at (510) 683-9850.
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