Huge Savings on Interest: Available to Anyone
Making regular additional payments toward your loan principal will yield enormous returns. Borrowers use different methods to accomplish this goal. For many people,Perhaps the easiest way to keep track is by making 1 additional payment per year. If you can't pay an extra whole payment all at once, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Finally, you can pay a half payment every other week. These options differ a little in lowering the total interest paid and reducing payback length, but they will all significantly reduce the length of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
Some people just can't make extra payments. But it's important to note that most mortgages will allow additional principal payments at any time. You can benefit from this rule to pay down your principal any time you get some extra money.
If, for example, you receive a large gift or tax refund just a few years into your mortgage, investing a few thousand dollars into your mortgage principal will shorten the repayment duration of your loan and save a huge amount on mortgage interest over the life of the mortgage loan. For most loans, even this small amount, paid early in the mortgage, could offer big savings in interest and in the length of the loan.
Coastal Mortgage Corp. can walk you through the pitfalls of getting a mortgage. Call us: 504-866-5626.
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