Huge Savings on Interest: Available to Anyone
Here's a simple trick to significantly reduce the length of your mortgage and save you thousands in interest: Make extra payments that apply to your principal. Borrowers pay more on principal by employing various techniques. For many people,Perhaps the simplest way to keep track is to make one additional mortgage payment every year. Of course, some people won't be able to swing this huge extra payment, so dividing a single extra payment into twelve additional monthly payments works too. Another popular option is to pay a half payment every other week. The result is you make one additional monthly payment every year. Each of these options produces different results, but they will all significantly shorten the length of your mortgage and lower the total interest you will pay over the life of the loan.
One-time Additional Payment
It may not be possible for you to pay extra every month or even every year. Remember that virtually all mortgages will permit you to make additional payments to your principal at any point during repayment. You can take advantage of this provision to pay down your mortgage principal when you get some extra money. For example: several years after moving into your home, you get a larger than expected tax refund,a large legacy, or a cash gift; , investing a few thousand dollars into your home's principal can significantly reduce the repayment duration of your loan and save enormously on interest over the duration of the mortgage loan. For most loans, even a relatively 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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