Simple Ways to Save Big on Your Mortgage
Making regular extra payments on the principal will yield big returns. Borrowers employ various techniques to meet this goal. For many people,Perhaps the easiest way to organize this process is to make one extra mortgage payment a year. Of course, many folks can't afford such a large extra payment, so dividing one additional payment into twelve additional monthly payments is a great option too. Finally, you can pay a half payment every two weeks. These options differ a little in reducing the total interest paid and shortening payback length, but each will significantly reduce the length of your mortgage and lower the total interest paid over the duration of the loan.
Lump-sum Additional Payment
It may not be possible for you to pay more every month or even every year. Keep in mind that almost all mortgages will permit you to make additional payments to your principal at any point during repayment. Any time you come into unexpected money, you can use this rule to pay an additional one-time payment toward principal.
If, for example, you were to receive an unexpected windfall four years into your mortgage, you could apply a portion of this windfall toward your loan principal, resulting in enormous savings and a shorter loan period. Unless the mortgage loan is very large, even a few thousand dollars applied early can produce huge savings over the duration of the loan.
Omni Mortgage Company, Inc. can walk you Omni Mortgage Company, Inc. can answer questions about these interest savings and many others. Call us: 603-893-6616.