Save Big on Your Mortgage
Making consistent extra payments on your principal balance will provide enormous savings. Borrowers employ various techniques to accomplish this goal. Paying a single extra payment one time a year may be the simplest to keep track of. Of course, some people will not be able to swing such an enormous additional expense, so splitting one additional payment into twelve additional monthly payments works as well. Another very popular option is to pay a half payment every other week. The result is you make one extra monthly payment each year. These options differ a little in reducing the total interest paid and reducing payback length, but each will significantly shorten the length of your mortgage and lower the total interest paid over the duration of the loan.
Lump-sum Additional Payment
Some people can't manage any extra payments. But you should remember that most mortgage contracts will allow additional payments at any time. You can benefit from this provision to pay down your principal any time you get some extra money.
For example: several years after moving into your home, you receive a huge tax refund,a large legacy, or a non-taxable cash gift; , investing a few thousand dollars into your mortgage principal will shorten the duration of your loan and save a huge amount on interest paid over the life of the loan. Unless the mortgage loan is very large, even a few thousand dollars applied early in the loan period can yield huge benefits over the duration of the loan.
F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org) can walk you At F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org), we answer questions about money-saving strategies every day. Give us a call: 214-300-8756.