Simple Ways to Save Big on Your Mortgage
Paying regular extra payments toward the loan principal will provide huge returns. You can do this in several ways. Making one additional payment one time a year is probably the easiest to track. However, many folks will not be able to pull off this huge extra payment, so splitting a single extra payment into twelve extra monthly payments is a fine option too. Another option is to pay a half payment every other week. The result is you make one extra monthly payment in a year. Each of these options yields slightly different results, but they will all significantly reduce the duration of your mortgage and lower the total interest paid over the duration of the loan.
Lump-sum Additional Payment
Some people just can't make extra payments. Keep in mind that almost all mortgages will allow you to make additional payments to your principal at any point during repayment. Any time you come into extra cash, consider using this rule to pay a one-time additional payment on your mortgage principal.
Here's an example: a few years after buying your home, you receive a huge tax refund,a large legacy, or a cash gift; , investing several thousand dollars into your home's principal will significantly reduce the duration of your loan and save enormously on mortgage interest over the duration of the loan. Unless the mortgage loan is quite large, even a few thousand dollars applied early in the loan period can produce huge benefits over the duration of the loan.
Coastal Mortgage Corp. can walk you Coastal Mortgage Corp. can answer questions about these interest savings and many others. Call us: 504-866-5626.
Do you have a question regarding a mortgage program?