Simple Ways to Save on Your Mortgage
Paying consistent additional payments toward the loan principal yields enormous returns. Borrowers pay more on principal by employing various techniques. For many people,Perhaps the easiest way to organize this process is by making one extra mortgage payment a year. However, many people will not be able to pull off such an enormous additional expense, so dividing a single additional payment into 12 additional monthly payments is a great option too. Finally, you can pay a half 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 the total interest paid over the duration of the loan.
Additional One-time payment
It may not be possible for you to pay more every month or even every year. Remember that virtually all mortgage contracts will allow you to make additional payments to your principal at any point during repayment. Whenever you come into unexpected cash, consider using this rule to pay an additional one-time payment toward principal. Here's an example: five years after moving into your home, you receive a larger than expected tax refund,a very large legacy, or a non-taxable cash gift; , investing several thousand dollars into your mortgage principal can significantly shorten the period of your loan and save a huge amount on interest over the life of the loan. Unless the loan is quite large, even a few thousand dollars applied early in the loan period can yield huge benefits over the life of the loan.
Coastal Mortgage Corp. can walk you through the pitfalls of getting a mortgage. Give us a call: 504-866-5626.
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