Simple Ways to Save on Your Mortgage
Making consistent additional payments on your principal provides enormous savings. Borrowers use different methods to accomplish this goal. For many people,Perhaps the simplest way to organize this process is to make 1 additional payment every year. But many folks won't be able to pull off such an enormous additional expense, so splitting one extra payment into 12 extra monthly payments is a great option too. Another popular option is to pay half of your payment every two weeks. The result is you make one additional monthly payment each year. Each option yields different results, but each will significantly shorten the length of your mortgage and lower your total interest paid.
Lump-sum Additional Payment
Some borrowers can't manage extra payments. But it's important to note that most mortgages will allow you to make additional payments at any time. You can take advantage of this provision to pay extra on your principal when you come into extra money. Here's an example: five years after buying your home, you receive a very large tax refund,a very large legacy, or a cash gift; , paying several thousand dollars into your mortgage principal can significantly reduce the repayment duration of your loan and save a huge amount on mortgage interest paid over the duration of the mortgage loan. Unless the mortgage loan is very large, even small amounts applied early in the loan period can produce huge benefits over the duration of the loan.
Crown Mortgage can walk you Crown Mortgage has your mortgage answers. Give us a call at (434) 975-5626.
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