Huge Savings on Interest: Available to Anyone with a Mortgage
Here's a simple trick to significantly reduce the length of your mortgage and save thousands of dollars in interest: Make additional payments that are applied to your loan principal. Borrowers accomplish this goal in several ways. Making one extra payment once a year may be the simplest to track. But many folks will not be able to afford such a large additional expense, so dividing one additional payment into twelve extra monthly payments works as well. Finally, you can commit to paying half of your mortgage payment every other week. Each of these options produces different results, but each will significantly reduce the duration of your mortgage and lower the total interest paid over the life of the loan.
Lump Sum Extra Payment
It may not be possible for you to pay more every month or even every year. Keep in mind that most mortgages will allow you to make additional payments to your principal at any point during repayment. You can take advantage of this provision to pay down your principal any time you come into extra money.
If, for example, you were to receive a very large gift or tax refund just a few years into your mortgage, investing a few thousand dollars into your home's principal will reduce the repayment duration of your loan and save a huge amount on interest paid over the life of the mortgage loan. For most loans, even a relatively modest amount, paid early in the mortgage, could offer big savings in interest and in the length of the loan.
Omni Mortgage Company, Inc.
NMLS#: 1954 can walk you the mortgage process. Give us a call at 6038936616.