Simple Ways to Save on Your Mortgage
Paying regular extra payments toward your principal can yield big savings. Borrowers accomplish this goal in a few different ways. For many people,Perhaps the simplest way to organize this process is to make 1 additional payment a year. If you can't pay an extra whole payment all at once, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Finally, you can pay half of your mortgage payment every other week. These options differ slightly in reducing the final payback amount and shortening payback length, but each will significantly shorten the length of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
Some people can't manage extra payments. Remember that most mortgage contracts will allow you to make additional payments to your principal at any point during repayment. You can benefit from this rule to pay down your mortgage principal any time you come into extra money.
If, for example, you were to receive an unexpected windfall just a few years into your mortgage, paying several thousand dollars into your mortgage principal will shorten the duration of your loan and save enormously on mortgage interest paid over the life of the mortgage loan. For most loans, even a small amount, paid early enough in the loan period, could offer huge savings in interest and in the length of the loan.
C2 Financial Corporation can walk you At C2 Financial Corporation, we answer questions about money-saving strategies every day. Call us: (727) 478-2797.
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