Save Big on your Mortgage
Paying consistent extra payments toward the loan principal will provide singificant returns. You can pay more on principal by employing various techniques. For many people,Perhaps the simplest way to keep track is to make 1 additional mortgage payment every year. However, many people won't be able to pull off such an enormous extra expense, so dividing an additional payment into twelve additional monthly payments works too. Another very popular option is to pay a half payment every two weeks. The effect here is that you make one additional monthly payment in a year. These options differ slightly in lowering the final payback amount and shortening payback length, but they will all significantly shorten the duration of your mortgage and lower the total interest you will pay over the duration of the loan.
One-time Additional Payment
Some borrowers can't manage any extra payments. But it's important to note that most mortgages allow additional payments at any time. You can benefit from this rule to pay down your principal any time you get some extra money. If, for example, you receive an unexpected windfall four years into your mortgage, you could pay a portion of this windfall toward your mortgage loan principal, resulting in significant savings and a shorter loan period. Unless the loan is very large, even modest amounts applied early in the loan period can produce huge benefits over the duration of the loan.
Saab Mortgage can walk you At Saab Mortgage, we answer questions about interest-saving strategies every day. Give us a call: 703-288-0777.
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