Save on your Mortgage Loan
There's a trick to reduce the repayment period of your mortgage and save you thousands over the course of your loan: Make additional payments which are applied to your loan principal. You can do this in various ways. For many people,Perhaps the easiest way to keep track is to make 1 extra payment per year. However, some people won't be able to pull off such an enormous additional expense, so splitting an additional payment into 12 extra monthly payments works too. Finally, you can commit to paying half of your mortgage payment every two weeks. Each of these options produces different results, but each will significantly shorten the length of your mortgage and lower the total interest you will pay over the life of the loan.
Lump Sum Extra Payment
It may not be possible for you to pay more every month or even every year. But it's important to note that most mortgages will allow additional principal payments at any time. Whenever you get some extra cash, you can use this provision to pay an additional one-time payment toward your mortgage principal. If, for example, you receive a very large gift or tax refund just a few years into your mortgage, you could apply this windfall toward your mortgage loan principal, resulting in enormous savings and a shortened payback period. For most loans, even this relatively small amount, paid early enough in the mortgage, could offer huge savings in interest and length of the loan.
F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org) can walk you the mortgage process. Call us: 214-300-8756.