Mortgage Savings Tips
There's a simple trick to significantly reduce the length of your mortgage and save thousands of dollars in interest: Make additional payments which are applied toward the loan principal. Borrowers use different methods to accomplish this goal. For many people,Perhaps the simplest way to organize this process is by making one extra mortgage payment per year. But many folks will not be able to pull off such an enormous additional expense, so dividing a single additional payment into twelve extra monthly payments is a fine option too. Another option is to pay a half payment every two weeks. The effect here is that you will make one additional monthly payment every year. Each option yields different results, but they will all significantly shorten the duration 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. Remember that most mortgages will permit you to make additional payments to your principal at any point during repayment. Whenever you get some extra cash, you can use this provision to make a one-time additional payment toward your principal. If, for example, you receive a surprise windfall three years into your mortgage, you could apply a portion of this windfall toward your mortgage loan principal, resulting in significant savings and a shortened payback period. For most loans, even a relatively modest amount, paid early enough in the loan period, could offer big savings in interest and in the duration of the loan.
Coastal Mortgage Corp. can walk you At Coastal Mortgage Corp., we answer questions about interest-saving strategies almost every day. Give us a call: 504-866-5626.
Do you have a question regarding a mortgage program?