Save Big on your Mortgage
There's a simple trick to significantly reduce the length of your mortgage and save thousands in interest: Make additional payments that are applied to your loan principal. People make this happen in a few ways. Paying one additional full payment one time a year is perhaps the easiest to arrange. However, many people can't swing this huge additional expense, so dividing a single additional payment into 12 extra monthly payments works as well. Finally, you can pay 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 your total interest paid.
Lump Sum Extra Payment
Some borrowers can't manage any extra payments. Remember that most mortgages will permit you to make additional payments to your principal at any point during repayment. Whenever you get some extra money, you can use this provision to pay a one-time additional payment on your principal. Here's an example: five years after buying your home, you receive a larger than expected tax refund,a large legacy, or a non-taxable cash gift; , you could pay this money toward your mortgage loan principal, which would result in significant savings and a shorter payback period. For most loans, even this modest amount, paid early enough in the loan period, could offer big savings in interest and in the duration of the loan.
Omni Mortgage Company, Inc.
NMLS#: 1954 can walk you the mortgage process. Give us a call at 6038936616.