Mortgage Savings Tips
Paying consistent extra payments on your principal provides singificant savings. Borrowers pay extra in a few different ways. Paying a single additional full payment once every year may be the easiest to track. But some people can't pull off such an enormous extra expense, so dividing a single additional payment into twelve extra monthly payments works too. Finally, you can pay a half payment every two weeks. Each option yields different results, but they will all significantly reduce the length of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
Some people just can't make extra payments. But you should remember that most mortgages will allow you to make additional principal payments at any time. Any time you come into unexpected money, consider using this rule to pay an additional one-time payment toward mortgage principal. For example: five years after moving into your home, you receive a huge tax refund,a large inheritance, or a non-taxable cash gift; , you could apply a portion of this money toward your loan principal, resulting in significant savings and a shortened loan period. For most loans, even a small 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. can walk you Omni Mortgage Company, Inc. has your mortgage answers. Give us a call at 603-893-6616.