Additional Payments Provide Big Savings
Paying regular additional payments on your loan principal yields singificant returns. You can accomplish this in various ways. Making one extra full payment once per year is likely the simplest to arrange. Of course, many folks can't pull off such an enormous additional expense, so splitting one additional payment into twelve extra monthly payments is a fine option too. Finally, you can commit to paying half of your mortgage payment every other week. Each option yields different results, but they will all significantly shorten the length of your mortgage and lower your total interest paid.
Additional One-time payment
Some people can't manage any extra payments. Remember that almost all mortgages will allow you to pay extra on your principal at any point during repayment. Any time you get some extra cash, consider using this provision to pay a one-time additional payment toward your mortgage principal.
Here's an example: five years after buying your home, you get a huge tax refund,a large inheritance, or a non-taxable cash gift; , you could apply a portion of this windfall toward your loan principal, which would result in huge savings and a shorter loan period. Unless the mortgage loan is quite large, even a few thousand dollars applied early can yield huge savings 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 interest-saving strategies almost every day. Call us: 214-300-8756.