Save Big on your Mortgage Loan
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Making regular additional payments on the loan principal provides enormous savings. Borrowers use different methods to meet this goal. For many people,Perhaps the simplest way to keep track is to make 1 additional payment a year. Of course, many folks won't be able to afford such a large additional expense, so dividing one extra payment into twelve additional monthly payments works as well. Finally, you can commit to paying a half payment every two weeks. Each option yields slightly different results, but they will all significantly shorten the duration of your mortgage and lower your total interest paid.
One-time Additional Payment
Some people just can't make any extra payments. But you should remember that most mortgages will allow additional principal payments at any time. You can benefit from this provision to pay down your principal when you get some extra money. For example: a few years after moving into your home, you receive a larger than expected tax refund,a very large inheritance, or a non-taxable cash gift; , you could apply a portion of this windfall toward your mortgage loan principal, which would result in significant savings and a shortened loan period. For most loans, even a small amount, paid early enough in the loan period, could offer big savings in interest and duration of the loan.
At MortgageCompanyName, we answer questions about interest-saving strategies every day. Call us at (208) 788-8800.