Making regular additional payments toward the principal balance will provide enormous savings. People accomplish this goal in a few ways. For many people,Perhaps the easiest way to keep track is to make 1 extra payment every year. However, some folks will not be able to swing such a large additional payment, so dividing a single additional payment into twelve extra monthly payments is a great option too. Finally, you can commit to paying a half payment every other week. These options differ a little in lowering the total interest paid and shortening payback length, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
It may not be possible for you to pay more every month or even every year. But remember that most mortgage contracts allow additional principal payments at any time. Any time you come into extra money, consider using this provision to make a one-time additional payment on your mortgage principal.
For example: five years after moving into your home, you get a very large tax refund,a large legacy, or a cash gift; , paying a few thousand dollars into your home's principal will shorten the period of your loan and save a huge amount on mortgage interest paid over the duration of the mortgage loan. For most loans, even this relatively small amount, paid early enough in the mortgage, could offer big savings in interest and length of the loan.
The Lending Source can walk you through the pitfalls of getting a mortgage. Call us: 9736012122.