Making regular additional payments on the principal will yield big savings. People make this happen in a few ways. For many people,Perhaps the simplest way to organize this process is to make one extra mortgage payment per year. If you can't pay an additional whole payment all at once, you can divide that payment by 12 and write a check for that additional amount monthly. Another very popular option is to pay a half payment every two weeks. The effect here is that you will make one additional monthly payment every year. These options differ slightly in lowering the final payback amount and shortening payback length, but each will significantly shorten the duration of your mortgage and lower your total interest paid.
Additional One-time payment
It may not be possible for you to pay down your principal every month or even every year. Remember that virtually all mortgages will permit you to pay extra on your principal at any point during repayment. Whenever you get some unexpected cash, consider using this rule to pay an additional one-time payment on your mortgage principal. If, for example, you receive a surprise windfall just a few years into your mortgage, you could apply a portion of this money toward your mortgage loan principal, which would result in huge savings and a shorter payback period. Unless the mortgage loan is very large, even a few thousand dollars applied early can produce huge benefits over the duration of the loan.
Longhorn Mortgage can walk you At Longhorn Mortgage, we answer questions about money-saving strategies every day. Call us: 512-302-9410.
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