Simple Ways to Save on Your Mortgage
There's a trick to significantly reduce the length of your mortgage and save thousands of dollars over the course of your loan: Make additional payments which go to your loan principal. Borrowers can do this in various ways. For many people,Perhaps the simplest way to keep track is to make one additional payment every year. Of course, some people can't afford such a large extra expense, so splitting a single additional payment into twelve extra monthly payments is a fine option too. Finally, you can commit to paying a half payment every other week. These options differ slightly in lowering the final payback amount 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 borrowers can't manage any extra payments. Keep in mind that most mortgages will allow you to pay extra on your principal at any time. You can benefit from this rule to pay down your mortgage principal any time you come into extra money. If, for example, you were to receive an unexpected windfall five years into your mortgage, paying several thousand dollars into your mortgage principal can significantly shorten the repayment duration of your loan and save enormously on mortgage interest over the life of the mortgage loan. Unless the loan is very large, even modest amounts applied early can yield huge benefits over the life of the loan.
Coastal Mortgage Corp. can walk you Coastal Mortgage Corp. can answer questions about these interest savings and many others. Give us a call at 504-866-5626.
Do you have a question regarding a mortgage program?