Mortgage Savings Tips
Here's a simple trick to significantly reduce the length of your mortgage and save you thousands of dollars over the course of your loan: Make additional payments which apply toward your principal. You can do this in several ways. For many people,Perhaps the easiest way to organize this process is by making 1 extra mortgage payment per year. Of course, many folks won't be able to swing this huge additional expense, so dividing a single extra payment into 12 extra monthly payments is a great option too. Finally, you can pay half of your mortgage payment every two weeks. These options differ a little in reducing the final payback amount and reducing payback length, but they will all significantly shorten the duration of your mortgage and lower your total interest paid.
Lump-sum Additional Payment
It may not be possible for you to pay extra every month or even every year. Keep in mind that almost all mortgage contracts will allow you to pay extra on your principal at any point during repayment. You can benefit from this rule to pay extra on your principal when you come into extra money. Here's an example: five years after buying your home, you get a very large tax refund,a large inheritance, or a non-taxable cash gift; , you could pay this windfall toward your loan principal, which would result in huge savings and a shorter loan period. For most loans, even this relatively small amount, paid early enough in the loan period, could offer huge savings in interest and in the duration of the loan.
C2 Financial Corporation can walk you C2 Financial Corporation can answer questions about these interest savings and many others. Give us a call: (727) 478-2797.
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