Save Big on Your Mortgage
Making consistent additional payments on the loan principal will yield big returns. Borrowers make this happen in several ways. For many people,Perhaps the simplest way to organize this process is to make one additional payment per year. However, many people can't afford this huge extra payment, so splitting an additional payment into 12 additional monthly payments works as well. Another popular option is to pay a half payment every other week. The effect here is that you will make one additional monthly payment every year. Each option yields slightly different results, but each will significantly shorten the duration of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
It may not be possible for you to pay extra every month or even every year. But remember that most mortgage contracts will allow you to make additional payments at any time. Whenever you come into extra money, you can use this provision to make an additional one-time payment on your mortgage principal. Here's an example: several years after buying your home, you receive a larger than expected tax refund,a very large inheritance, or a cash gift; , you could pay a portion of this windfall toward your mortgage loan principal, resulting in significant savings and a shorter payback period. Unless the loan is very large, even a few thousand dollars applied early in the loan period can produce huge benefits over the life of the loan.
Equity Edge Mortgage, Inc. can walk you the mortgage process. Call us at 719-425-2226.