Save on Your Mortgage
Paying consistent extra payments toward your loan principal yields enormous returns. People make this happen in a few different ways. Making a single extra full payment once a year is likely the simplest to track. If you can't afford to pay an extra whole payment all at once, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Finally, you can commit to paying a half payment every other week. These options differ slightly in reducing the total interest paid and shortening 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 more every month or even every year. Remember that virtually all mortgage contracts will allow you to pay extra on your principal at any point during repayment. You can take advantage of this provision to pay down your mortgage principal any time you come into extra money. If, for example, you receive an unexpected windfall five years into your mortgage, paying several thousand dollars into your home's principal will reduce the period of your loan and save a huge amount on interest paid over the life of the loan. Unless the loan is very large, even small amounts applied early in the loan period can yield huge benefits over the life of the loan.
MidTowne Mortgage can walk you MidTowne Mortgage has your mortgage answers. Give us a call: (478) 746-2063.