Save on Your Mortgage
Making regular extra payments toward the principal balance will provide enormous savings. Borrowers pay more on principal in various ways. For many people,Perhaps the easiest way to keep track is by making 1 additional payment every year. But some folks can't pull off such a large additional payment, so dividing one extra payment into twelve extra monthly payments is a great option too. Another option is to pay half of your payment every two weeks. The effect here is that you will make one additional monthly payment every year. Each of these options yields slightly different results, but each will significantly shorten the duration of your mortgage and lower your total interest paid.
Lump-sum Additional Payment
Some folks just can't make any extra payments. Remember that almost all mortgage contracts will permit you to pay extra on your principal at any time. You can take advantage of this provision to pay extra on your principal any time 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 reduce the duration of your loan and save enormously on mortgage interest over the life of the mortgage loan. Unless the mortgage loan is quite large, even a few thousand dollars applied early can produce huge benefits over the duration of the loan.
F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org) can walk you F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org) can answer questions about these interest savings and many others. Give us a call: 214-300-8756.