Simple Ways to Save on Your Mortgage
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There's a simple trick to significantly reduce the length of your mortgage and save thousands of dollars over the course of your loan: Make additional payments that are applied to the loan principal. You can pay more on principal in many different ways. For many people,Perhaps the easiest way to keep track is to make one additional mortgage payment every year. But many folks can't swing this huge extra expense, so dividing one extra payment into twelve extra monthly payments is a fine option too. Finally, you can commit to paying a half payment every other week. These options differ slightly in lowering the total interest paid and shortening payback length, 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.
Additional One-time payment
Some borrowers can't manage any extra payments. But remember that most mortgages will allow additional payments at any time. You can benefit from this rule to pay extra on your mortgage principal when you come into extra money.
Here's an example: several years after buying your home, you receive a huge tax refund,a very large legacy, or a cash gift; , paying several thousand dollars into your mortgage principal will significantly shorten the duration of your loan and save enormously on interest paid over the life of the loan. Unless the loan is quite large, even modest amounts applied early can produce huge benefits over the life of the loan.
Advanced Mortgage, Inc. can walk you through the pitfalls of getting a mortgage. Give us a call: (972)991-0080.