Huge Savings on Interest: Available to Anyone with a Mortgage
Paying regular additional payments on the principal can yield enormous returns. Borrowers can accomplish this in several ways. For many people,Perhaps the easiest way to organize this process is by making 1 additional payment every year. If you can't pay an extra whole payment in one month, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Another option is to pay half of your payment every two weeks. The effect here is that you make one extra monthly payment each year. Each option produces slightly different results, but each will significantly shorten the duration of your mortgage and lower the total interest you will pay over the life of the loan.
Lump-sum Additional Payment
Some folks just can't make extra payments. Keep in mind that most mortgage contracts will allow you to make additional payments to your principal at any time. Any time you get some unexpected cash, consider using this rule to make an additional one-time payment on principal. If, for example, you receive a large gift or tax refund just a few years into your mortgage, you could apply a portion of this windfall toward your loan principal, resulting in enormous savings and a shorter loan period. Unless the loan is very large, even a few thousand dollars applied early can produce huge benefits over the duration of the loan.
Churchill Mortgage Company can walk you Churchill Mortgage Company can answer questions about these interest savings and many others. Call us: (703) 551-4107.