Huge Savings on Interest: Available to Anyone with a Mortgage
Looking for a mortgage loan? We'd be thrilled to discuss our mortgage offerings! Give us a call today at 727-466-4301. Ready to begin? Apply Now
Making regular additional payments on your principal yields huge returns. Borrowers can accomplish this using a few different techniques. Paying a single extra payment one time every year is likely the easiest to keep track of. If you can't afford to pay an extra whole payment in one month, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can pay half of your mortgage payment every other week. These options differ slightly in lowering the total interest paid and reducing payback length, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.
One-time Additional Payment
It may not be possible for you to pay extra every month or even every year. But you should remember that most mortgages will allow you to make additional principal payments at any time. Any time you come into unexpected cash, you can use this provision to pay an additional one-time payment toward mortgage principal.
For example: several years after buying your home, you receive a huge tax refund,a very large legacy, or a cash gift; ,you could apply a portion of this money toward your mortgage loan principal , resulting in huge savings and a shorter loan period. Unless the mortgage loan is very large, even small amounts applied early can yield huge benefits over the duration of the loan.
Marc Moser / NMLS# 232625 / Licensed in Florida can get you past the pitfalls of getting a mortgage. Give us a call: 727-466-4301.