Huge Savings on Interest: Available to Anyone with a Mortgage
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Paying consistent extra payments on the principal will provide enormous savings. Borrowers pay extra in several ways. For many people,Perhaps the easiest way to organize this process is by making 1 additional mortgage payment a year. But some people can't pull off such a large extra payment, so splitting one extra payment into 12 extra monthly payments works too. Finally, you can pay half of your mortgage payment every other week. These options differ a little in lowering the final payback amount and shortening payback length, but each will significantly reduce the duration of your mortgage and lower your total interest paid.
Additional One-time payment
Some borrowers can't manage extra payments. But you should remember that most mortgage contracts will allow additional payments at any time. Any time you come into extra cash, consider using this provision to pay an additional one-time payment on your principal.
Here's an example: several years after buying your home, you get a larger than expected tax refund,a large legacy, or a cash gift; , investing several thousand dollars into your mortgage principal can shorten the duration of your loan and save enormously on mortgage interest over the life of the mortgage loan. Unless the mortgage loan is very large, even small amounts applied early in the loan period can yield huge benefits over the life of the loan.