Save Big on Your Mortgage
Here's a simple trick to reduce the repayment period of your mortgage and save you thousands of dollars over the course of your loan: Make additional payments that apply toward the loan principal. Borrowers make this happen in several different ways. For many people,Perhaps the simplest way to keep track is by making one extra payment per year. However, some people will not be able to afford such a large additional payment, so splitting an extra payment into twelve additional monthly payments is a fine option too. Another option is to pay half of your payment every two weeks. The result is you will make one additional monthly payment every year. Each of these options yields slightly different results, but each will significantly reduce the duration of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
Some borrowers can't manage any extra payments. But it's important to note that most mortgages will allow you to make additional payments at any time. You can take advantage of this rule to pay extra on your principal any time you get some extra money.
If, for example, you were to receive a surprise windfall just a few years into your mortgage, you could apply this windfall toward your mortgage loan principal, resulting in significant savings and a shortened loan period. Unless the loan is very large, even a few thousand dollars applied early can yield huge savings over the life of the loan.
Creative Mortgage Lenders can walk you through the pitfalls of getting a mortgage. Give us a call at 727-822-2222.