Save on your Mortgage Loan
Making consistent additional payments on your principal balance provides singificant savings. Borrowers can do this using a few different techniques. For many people,Perhaps the easiest way to organize this process is by making one additional payment per year. However, some folks will not be able to swing this huge extra expense, so splitting one additional payment into twelve additional monthly payments works as well. Finally, you can pay a half payment every other week. These options differ a little in lowering the final payback amount and shortening payback length, but each will significantly reduce the duration of your mortgage and lower your total interest paid.
Additional One-time payment
It may not be possible for you to pay more every month or even every year. But remember that most mortgages will allow you to make additional principal payments at any time. Any time you come into extra money, consider using this rule to pay an additional one-time payment toward principal. If, for example, you were to receive a large gift or tax refund just a few years into your mortgage, paying a few thousand dollars into your mortgage principal will shorten the duration of your loan and save a huge amount on interest paid over the duration of the mortgage loan. For most loans, even a modest amount, paid early enough in the mortgage, could offer huge savings in interest and in the duration of the loan.
Saab Mortgage can walk you Saab Mortgage has your mortgage answers. Give us a call at 703-288-0777.
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