Big Interest Savings: Available to Anyone

Paying consistent extra payments toward the principal will yield huge returns. People pay extra in a few ways. For many people,Perhaps the simplest way to organize this process is by making one additional mortgage payment every year. But many people will not be able to swing such an enormous additional expense, so splitting a single additional payment into 12 extra monthly payments works too. Another popular option is to pay half of your payment every two weeks. The effect here is that you make one extra monthly payment every year. Each of these options produces slightly different results, but they will all significantly shorten the duration of your mortgage and lower your total interest paid.

Lump Sum Extra Payment

Some borrowers can't manage extra payments. But remember that most mortgages will allow additional payments at any time. Any time you come into unexpected cash, you can use this rule to pay an additional one-time payment toward your principal. For example: a few years after buying your home, you receive a huge tax refund,a very large legacy, or a non-taxable cash gift; , you could pay a portion of this windfall toward your mortgage loan principal, resulting in enormous savings and a shortened payback period. For most loans, even this relatively modest amount, paid early in the mortgage, could offer huge savings in interest and in the duration of the loan.

1st Credential Mortgage Inc can walk you 1st Credential Mortgage Inc has your mortgage answers. Call us at (281) 778-0805.