Additional Payments Provide Huge Mortgage Savings
There's a trick to significantly reduce the length of your mortgage and save thousands of dollars in interest: Make extra payments which apply to the loan principal. Borrowers employ various techniques to meet this goal. For many people,Perhaps the easiest way to keep track is to make one extra mortgage payment per year. But many folks won't be able to pull off this huge extra payment, so splitting an extra payment into twelve extra monthly payments works as well. Finally, you can pay a half payment every two weeks. These options differ a little in reducing the total interest paid and reducing payback length, but each will significantly reduce the duration of your mortgage and lower the total interest you will pay over the duration of the loan.
Additional One-time payment
Some folks just can't make any extra payments. But it's important to note that most mortgages will allow you to make additional principal payments at any time. You can take advantage of this rule to pay down your principal when you come into extra money.
If, for example, you receive a surprise windfall three years into your mortgage, investing several thousand dollars into your home's principal will significantly reduce the duration of your loan and save enormously on interest paid over the life of the loan. Unless the mortgage loan is very large, even small amounts applied early in the loan period can produce huge savings 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. Call us: 504-866-5626.
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