Huge Interest Savings: Available to Anyone
Making consistent additional payments toward the loan principal provides big returns. You can accomplish this using a few different techniques. For many people,Perhaps the easiest way to keep track is by making one additional payment every year. However, some folks can't swing this huge extra expense, so dividing one additional payment into twelve additional monthly payments is a great option too. Finally, you can pay a half payment every other week. Each of these options produces slightly different results, but each will significantly shorten the duration of your mortgage and lower your total interest paid.
One-time Additional Payment
Some people can't manage any extra payments. But it's important to note that most mortgage contracts will allow additional principal payments at any time. You can benefit from this provision to pay extra on your mortgage principal when you get some extra money. If, for example, you were to receive a large gift or tax refund just a few years into your mortgage, investing a few thousand dollars into your home's principal can significantly shorten the repayment duration of your loan and save enormously on mortgage interest paid over the duration of the mortgage loan. For most loans, even this relatively modest amount, paid early in the mortgage, could offer big savings in interest and length of the loan.
Longhorn Mortgage can walk you Longhorn Mortgage has your mortgage answers. Call us: 512-302-9410.
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