Save Big on Your Mortgage
Here's a simple trick to significantly reduce the length of your mortgage and save thousands of dollars in interest: Make extra payments that are applied toward your loan principal. People make this happen in several different ways. For many people,Perhaps the simplest 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 that payment by 12 and pay that additional amount monthly. Another popular option is to pay a half payment every two weeks. The effect here is that you will make one extra monthly payment each year. These options differ a little in lowering the total interest paid and reducing payback length, but each will significantly reduce the duration of your mortgage and lower your total interest paid.
Additional One-time payment
It may not be possible for you to pay more every month or even every year. Remember that almost all mortgage contracts will allow you to pay extra on your principal at any point during repayment. You can take advantage of this rule to pay down your principal when you get some extra money. Here's an example: a few years after moving into your home, you receive a huge tax refund,a large inheritance, or a non-taxable cash gift; , investing a few thousand dollars into your mortgage principal will reduce the duration of your loan and save a huge amount on interest over the life of the loan. For most loans, even a small amount, paid early enough in the loan period, could offer big savings in interest and in 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 at 214-300-8756.