Save on your Mortgage
There's a trick to reduce the repayment period of your mortgage and save thousands of dollars in interest: Make extra payments that apply toward your principal. Borrowers make this happen in a few ways. Paying a single extra payment one time per year is likely the simplest to arrange. If you can't pay an extra whole payment in one month, you can divide that payment by 12 and pay that additional amount monthly. Finally, you can pay a half payment every other week. Each option yields slightly different results, but they will all significantly shorten the length of your mortgage and lower the total interest you will pay over the duration of the loan.
Lump Sum Extra Payment
It may not be possible for you to pay more every month or even every year. But remember that most mortgage contracts allow you to make additional payments at any time. You can benefit from this rule to pay extra on 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 very large inheritance, or a cash gift; , investing several thousand dollars into your mortgage principal can reduce the duration of your loan and save a huge amount on interest over the life of the mortgage loan. Unless the loan is quite large, even a few thousand dollars applied early in the loan period can yield huge savings 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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