Save on your Mortgage Loan
Making regular additional payments on your principal will provide enormous savings. You can do this using a few different techniques. For many people,Perhaps the easiest way to keep track is to make 1 additional payment per year. If you can't afford to pay an additional whole payment all at once, 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 reducing the total interest paid and shortening payback length, but they will all significantly shorten the duration of your mortgage and lower your total interest paid.
Lump-sum Additional Payment
It may not be possible for you to pay more every month or even every year. Keep in mind that almost all mortgage contracts will permit you to make additional payments to your principal at any point during repayment. You can benefit from this rule to pay down your mortgage principal when you get some extra money. If, for example, you were to receive a very large gift or tax refund four years into your mortgage, you could pay this money toward your loan principal, which would result in enormous savings and a shorter payback period. Unless the mortgage loan is very large, even a few thousand dollars applied early can produce huge benefits over the life of the loan.
MidTowne Mortgage can walk you MidTowne Mortgage has your mortgage answers. Call us at (478) 746-2063.