Save on your Mortgage Loan
There's a trick to reduce the repayment period of your mortgage and save thousands over the course of your loan: Make extra payments that go toward the loan principal. People make this happen in several different ways. Making a single additional payment once a year is probably the simplest to track. If you can't pay an extra whole payment in one month, you can divide that payment by 12 and pay that additional amount monthly. Finally, you can pay half of your mortgage payment every other week. Each of these options produces different results, but each will significantly reduce the length of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
It may not be possible for you to pay down your principal every month or even every year. But remember that most mortgage contracts will allow additional principal payments at any time. Whenever you get some extra cash, consider using this rule to pay a one-time additional payment on your mortgage principal. Here's an example: a few years after moving into your home, you receive a huge tax refund,a very large legacy, or a cash gift; , paying a few thousand dollars into your home's principal can significantly shorten the period of your loan and save a huge amount on interest over the life of the loan. Unless the mortgage loan is very large, even modest amounts applied early can produce huge savings over the life of the loan.
Saab Mortgage can walk you the mortgage process. Call us: 703-288-0777.
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