Mortgage Saving
There's a simple trick to significantly reduce the length of your mortgage and save you thousands in interest: Make additional payments which go toward the loan principal. You can accomplish this in several ways. For many people,Perhaps the easiest way to organize this process is to make one extra payment every year. If you can't afford to pay an extra whole payment all at once, you can divide your payment by 12 and write a check for that additional amount monthly. Another popular option is to pay a half payment every other week. The effect here is that you make one additional monthly payment every year. These options differ slightly in lowering the total interest paid and reducing payback length, but each will significantly reduce the duration of your mortgage and lower your total interest paid.
Lump-sum Additional Payment
It may not be possible for you to pay extra every month or even every year. Remember that most mortgages will permit you to pay extra on your principal at any point during repayment. Whenever you get some unexpected money, you can use this provision to pay an additional one-time payment on your mortgage principal. Here's an example: several years after moving into your home, you receive a larger than expected tax refund,a large inheritance, or a non-taxable cash gift; , investing a few thousand dollars into your mortgage principal can significantly reduce the repayment duration of your loan and save a huge amount on mortgage interest paid over the duration of the loan. For most loans, even a relatively modest amount, paid early in the loan period, could offer big savings in interest and duration of the loan.
Net Equity Financial Mortgage can walk you through the pitfalls of getting a mortgage. Call us at 2157413131.