Save on Your Mortgage
There's a simple trick to significantly reduce the length of your mortgage and save thousands of dollars in interest: Make additional payments that are applied to your principal. Borrowers can accomplish this in various ways. For many people,Perhaps the simplest way to keep track is to make one additional payment per year. But some folks can't afford this huge additional expense, so splitting an additional payment into 12 extra monthly payments works too. Finally, you can commit to paying a half payment every two weeks. Each option produces slightly different results, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
Some folks just can't make extra payments. But you should remember that most mortgage contracts allow you to make additional principal payments at any time. You can benefit from this provision to pay down your mortgage principal any time you come into extra money. For example: several years after moving into your home, you get a larger than expected tax refund,a very large legacy, or a cash gift; , you could pay this money toward your loan principal, which would result in significant savings and a shorter loan period. For most loans, even this relatively modest amount, paid early enough in the mortgage, could offer huge savings in interest and duration of the loan.
Coastal Mortgage Corp. can walk you At Coastal Mortgage Corp., we answer questions about money-saving strategies every day. Give us a call: 504-866-5626.
Do you have a question regarding a mortgage program?