Save Big on your Mortgage Loan
Paying regular extra payments toward your principal balance yields huge returns. Borrowers make this happen in a few ways. Making a single extra payment one time a year may be the simplest to track. If you can't afford to pay an extra whole payment all at once, you can divide your payment by 12 and write a check for that additional amount monthly. Another very popular option is to pay half of your payment every other week. The result is you make one additional monthly payment every year. These options differ slightly in reducing the total interest paid and reducing payback length, but they will all significantly shorten the length of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
It may not be possible for you to pay more every month or even every year. Keep in mind that almost all mortgage contracts will permit you to pay extra on your principal at any point during repayment. Whenever you come into extra money, you can use this provision to make an additional one-time payment on principal. For example: five years after buying your home, you get a larger than expected tax refund,a large inheritance, or a non-taxable cash gift; , you could pay this money toward your loan principal, resulting in enormous savings and a shortened payback period. Unless the loan is very large, even modest amounts applied early can produce huge benefits over the life of the loan.
Evolution Mortgage Inc. can walk you through the pitfalls of getting a mortgage. Give us a call: 631-273-1188.
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