There's a simple trick to reduce the repayment period of your mortgage and save thousands of dollars over the course of your loan: Make extra payments that are applied to your principal. Borrowers pay extra in a few different ways. For many people,Perhaps the simplest way to organize this process is by making 1 extra payment a year. If you can't pay an additional whole payment in one month, you can divide your payment by 12 and write a check for that additional amount monthly. Finally, you can pay a half payment every other week. Each of these options yields slightly different results, but each will significantly shorten the length of your mortgage and lower your total interest paid.
It may not be possible for you to pay more every month or even every year. But you should remember that most mortgages allow additional payments at any time. Whenever you come into unexpected money, consider using this provision to make a one-time additional payment on your principal. If, for example, you receive a very large gift or tax refund five years into your mortgage, investing a few thousand dollars into your mortgage principal can reduce the duration of your loan and save enormously on mortgage interest over the life of the loan. Unless the loan is very large, even small amounts applied early can produce huge savings over the life of the loan.
Mortgage Rates Changes On a daily basis and can vary depending on your unique situation. simply use the quick form below to instantly recieve free and accurate rate quotes.