Huge Savings on Interest: Available to Anyone
Making regular additional payments on your principal will provide enormous savings. Borrowers can pay more on principal by employing various techniques. Paying one additional payment one time every year is perhaps the simplest to track. If you can't pay an extra whole payment all at once, you can divide your payment by 12 and pay that additional amount monthly. Finally, you can pay half of your mortgage payment every other week. Each option produces different results, but they will all significantly shorten the length of your mortgage and lower your total interest paid.
Lump-sum Additional Payment
Some folks can't manage extra payments. Keep in mind that virtually all mortgage contracts will permit you to pay extra on your principal at any point during repayment. Whenever you come into extra money, consider using this provision to pay a one-time additional payment on your principal.
Here's an example: several years after moving into your home, you receive a huge tax refund,a very large legacy, or a non-taxable cash gift; , paying a few thousand dollars into your mortgage principal will significantly shorten the duration of your loan and save a huge amount on interest paid over the duration of the loan. For most loans, even this modest amount, paid early in the mortgage, could offer huge savings in interest and in the duration of the loan.
Coastal Mortgage Corp. can walk you the mortgage process. Give us a call at 504-866-5626.
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