Save on your Mortgage Loan
Paying regular additional payments toward the loan principal yields enormous returns. People make this happen in several ways. For many people,Perhaps the easiest way to keep track is by making one additional payment every year. Of course, some people can't pull off this huge additional payment, so splitting a single extra payment into 12 additional monthly payments is a great option too. Finally, you can pay half of your mortgage payment every two weeks. Each option produces different results, but they will all significantly reduce the length of your mortgage and lower the total interest you will pay over the life of the loan.
One-time Additional Payment
It may not be possible for you to pay extra every month or even every year. But you should remember that most mortgages allow additional payments at any time. You can take advantage of this rule to pay extra on your principal any time you come into extra money. If, for example, you were to receive an unexpected windfall three years into your mortgage, you could apply this windfall toward your loan principal, which would result in enormous savings and a shorter loan period. Unless the mortgage loan is quite large, even a few thousand dollars applied early can yield huge benefits over the life of the loan.
Affinity Mortgage Brokers can walk you Affinity Mortgage Brokers can answer questions about these interest savings and many others. Give us a call: 719-425-2226.