Save on your Mortgage Loan
Paying regular extra payments toward your principal will provide enormous returns. People use different methods to accomplish this goal. For many people,Perhaps the easiest way to organize this process is by making one additional mortgage payment a year. If you can't afford to pay an extra whole payment in one month, you can divide your payment by 12 and write a check for that additional amount monthly. Another very popular option is to pay half of your payment every other week. The result is you will make one extra monthly payment in a year. Each option produces different results, but each will significantly shorten the duration of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
It may not be possible for you to pay extra every month or even every year. But you should remember that most mortgages allow you to make additional principal payments at any time. You can take advantage of this provision to pay down your principal when you get some extra money.
If, for example, you were to receive an unexpected windfall five years into your mortgage, you could pay a portion of this windfall toward your mortgage loan principal, which would result in huge savings and a shorter loan period. For most loans, even a modest amount, paid early enough in the loan period, could offer big savings in interest and in the duration 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.
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