Save Big on your Mortgage
Making regular extra payments toward the principal balance will yield enormous returns. Borrowers can do this in several ways. For many people,Perhaps the easiest way to organize this process is by making one extra mortgage payment every year. But some people can't swing such an enormous additional payment, so dividing an additional payment into 12 extra monthly payments works as well. Finally, you can commit to paying half of your mortgage payment every other week. These options differ a little in reducing the final payback amount and reducing payback length, but they will all significantly reduce the length of your mortgage and lower the total interest you will pay over the duration of the loan.
Additional One-time payment
Some folks can't manage extra payments. Remember that virtually all mortgage contracts will allow you to make additional payments to your principal at any point during repayment. You can benefit from this rule to pay down your principal when you come into extra money. If, for example, you receive a large gift or tax refund just a few years into your mortgage, paying a few thousand dollars into your home's principal can reduce the repayment period of your loan and save a huge amount on interest over the life of the mortgage loan. For most loans, even a relatively small amount, paid early in the mortgage, could offer huge savings in interest and in the duration of the loan.
Tenby J. Dahman can walk you At Tenby J. Dahman, we answer questions about money-saving strategies almost every day. Call us at (303) 862-7760.