Save Big on your Mortgage Loan
There's a simple trick to reduce the repayment period of your mortgage and save thousands in interest: Make extra payments that are applied to the loan principal. Borrowers use different methods to accomplish this goal. For many people,Perhaps the simplest way to keep track is by making one additional payment per year. If you can't pay an additional whole payment in one month, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can pay a half payment every other week. These options differ a little in reducing the total interest paid and reducing payback length, but they will all significantly reduce the length of your mortgage and lower your total interest paid.
Lump-sum Additional Payment
Some borrowers can't manage any extra payments. Keep in mind that almost all mortgages will allow you to make additional payments to your principal at any point during repayment. Any time you get some extra cash, you can use this rule to make an additional one-time payment on your mortgage principal.
If, for example, you were to receive an unexpected windfall just a few years into your mortgage, you could apply this money toward your mortgage loan principal, resulting in significant savings and a shortened payback period. Unless the loan is very large, even a few thousand dollars applied early in the loan period can produce huge benefits over the duration of the loan.
Churchill Mortgage Company can walk you At Churchill Mortgage Company, we answer questions about money-saving strategies almost every day. Call us: (703) 551-4107.