Mortgage Saving Tips
There's a trick to reduce the repayment period of your mortgage and save you thousands over the course of your loan: Make extra payments which are applied to your principal. People use different methods to accomplish this goal. Paying a single extra full payment one time a year is perhaps the simplest to track. Of course, many folks will not be able to swing such a large additional payment, so dividing a single extra payment into twelve extra monthly payments works too. Finally, you can pay half of your mortgage payment every other week. Each option yields slightly different results, but each will significantly reduce the duration of your mortgage and lower your total interest paid.
Additional One-time payment
Some borrowers just can't make extra payments. Keep in mind that virtually all mortgages will allow you to make additional payments to your principal at any point during repayment. You can take advantage of this provision to pay down your principal when you get some extra money.
If, for example, you receive a large gift or tax refund four years into your mortgage, you could apply a portion of this windfall toward your loan principal, which would result in enormous savings and a shortened payback period. Unless the mortgage loan is very large, even a few thousand dollars applied early can produce huge savings over the duration of the loan.
PREMIERE MORTGAGE SERVICES INC. can walk you PREMIERE MORTGAGE SERVICES INC. can answer questions about these interest savings and many others. Call us at 978-422-2311.