Save Big on Your Mortgage
Making consistent additional payments on your principal yields singificant returns. People pay extra in a few ways. For many people,Perhaps the easiest way to organize this process is to make 1 additional mortgage payment per year. If you can't afford to pay an additional whole payment all at once, you can divide your payment by 12 and pay that additional amount monthly. Another option is to pay a half payment every two weeks. The effect here is that you make one extra monthly payment in a year. Each option produces different results, but each will significantly reduce the duration of your mortgage and lower your total interest paid.
Additional One-time payment
Some borrowers just can't make any extra payments. But it's important to note that most mortgage contracts allow additional principal payments at any time. You can benefit from this rule to pay down your principal when you get some extra money.
If, for example, you were to receive an unexpected windfall three years into your mortgage, investing several thousand dollars into your home's principal can significantly shorten the duration of your loan and save enormously on interest paid over the duration of the loan. Unless the mortgage loan is quite large, even small amounts applied early in the loan period can produce huge savings over the duration of the loan.
Crown Mortgage can walk you the mortgage process. Call us at (434) 975-5626.
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