Mortgage Saving Tips
Making consistent extra payments toward your loan principal can yield big savings. Borrowers employ various techniques to accomplish this goal. For many people,Perhaps the easiest way to keep track is by making one extra payment every year. If you can't afford to pay an additional whole payment all at once, you can divide your payment by 12 and write a check for that additional amount monthly. Finally, you can pay half of your mortgage payment every two weeks. Each of these options produces slightly different results, but they will all significantly reduce the length of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
It may not be possible for you to pay extra every month or even every year. But remember that most mortgage contracts allow additional payments at any time. You can take advantage of this provision to pay down your principal any time you come into extra money. Here's an example: a few years after buying your home, you receive a huge tax refund,a very large inheritance, or a non-taxable cash gift; , you could apply a portion of this money toward your mortgage loan principal, resulting in huge savings and a shorter payback period. For most loans, even a relatively modest amount, paid early enough in the loan period, could offer huge savings in interest and in the length of the loan.
Coastal Mortgage Corp. can walk you the mortgage process. Call us at 504-866-5626.
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