Huge Interest Savings: Available to Anyone with a Mortgage
Paying regular extra payments toward the principal will provide enormous savings. You pay more on principal in various ways. Paying a single additional payment one time every year may be the simplest to track. Of course, many folks will not be able to pull off this huge additional expense, so dividing an additional payment into 12 extra monthly payments works too. Another very popular option is to pay a half payment every other week. The result is you will make one additional monthly payment each year. Each of these options produces different results, but each will significantly reduce the duration of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
Some folks can't manage extra payments. Keep in mind that most mortgages will allow you to pay extra on your principal at any time. You can take advantage of this rule to pay down your mortgage principal any time you come into extra money.
Here's an example: five years after moving into your home, you receive a huge tax refund,a very large legacy, or a cash gift; , you could pay this money toward your mortgage loan principal, which would result in huge savings and a shorter payback period. Unless the loan is quite large, even a few thousand dollars applied early in the loan period can produce huge benefits over the life of the loan.
Omni Mortgage Company, Inc. can walk you At Omni Mortgage Company, Inc., we answer questions about interest-saving strategies almost every day. Give us a call at 603-893-6616.