Extra Payments Yield Huge Mortgage Savings

Making consistent additional payments toward your principal provides singificant savings. People use different methods to meet this goal. For many people,Perhaps the simplest way to organize this process is to make one extra payment every year. Of course, many people won't be able to swing such an enormous additional payment, so splitting one extra payment into 12 additional monthly payments is a great option too. Finally, you can commit to paying half of your mortgage payment every other week. These options differ slightly in lowering the total interest paid and reducing payback length, but each will significantly shorten the duration of your mortgage and lower your total interest paid.

Additional One-time payment

Some folks just can't make extra payments. Keep in mind that almost all mortgages will permit you to make additional payments to your principal at any time. You can take advantage of this rule to pay down your principal when you come into extra money.

If, for example, you receive a very large gift or tax refund five years into your mortgage, paying a few thousand dollars into your home's principal will significantly reduce the duration of your loan and save enormously on interest paid over the duration of the loan. Unless the mortgage loan is very large, even a few thousand dollars applied early can produce huge benefits over the duration of the loan.

Net Equity Financial Mortgage LLC can walk you Net Equity Financial Mortgage LLC can answer questions about these interest savings and many others. Give us a call at 2157413131.