Huge Savings on Interest: Available to Anyone with a Mortgage
Making regular additional payments toward the loan principal provides enormous savings. Borrowers can do this in several ways. Paying 1 extra payment one time per year may be the easiest to arrange. However, many people won't be able to swing such a large additional expense, so dividing an extra payment into 12 extra monthly payments works as well. Finally, you can commit to paying a half payment every two weeks. Each option yields slightly different results, but they will all significantly shorten the length of your mortgage and lower the total interest paid over the duration of the loan.
Additional One-time payment
It may not be possible for you to pay down your principal every month or even every year. But it's important to note that most mortgage contracts will allow additional principal payments at any time. Whenever you get some unexpected money, you can use this provision to make a one-time additional payment toward mortgage principal. For example: a few years after moving into your home, you get a very large tax refund,a very large inheritance, or a cash gift; , you could pay a portion of this money toward your loan principal, which would result in significant savings and a shorter payback period. Unless the mortgage loan is quite large, even small amounts applied early can produce huge savings over the duration of the loan.
C2 Financial Corporation can walk you through the pitfalls of getting a mortgage. Call us: (727) 478-2797.
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