Save on your Mortgage
Here's a simple trick to reduce the repayment period of your mortgage and save you thousands over the course of your loan: Make additional payments which are applied toward your loan principal. People use different methods to accomplish this goal. For many people,Perhaps the easiest way to organize this process is to make one additional payment a year. But some folks will not be able to afford such an enormous additional payment, so splitting a single additional payment into twelve additional monthly payments is a great option too. Another popular option is to pay half of your payment every two weeks. The effect here is that you will make one additional monthly payment in a year. These options differ slightly in reducing the final payback amount and shortening payback length, but they will all significantly reduce the length of your mortgage and lower your total interest paid.
One-time Additional Payment
Some people just can't make any extra payments. Remember that virtually all mortgages will allow you to pay extra on your principal at any time. Any time you come into extra money, you can use this rule to make a one-time additional payment on mortgage principal. If, for example, you receive an unexpected windfall just a few years into your mortgage, investing several thousand dollars into your home's principal will significantly reduce the period of your loan and save a huge amount on mortgage interest paid over the life of the mortgage loan. Unless the mortgage loan is very large, even a few thousand dollars applied early in the loan period can yield huge savings over the duration of the loan.
Coastal Mortgage Corp. can walk you At Coastal Mortgage Corp., we answer questions about interest-saving strategies every day. Call us at 504-866-5626.
Do you have a question regarding a mortgage program?