Mortgage Saving Tips
Here's a simple trick to reduce the repayment period of your mortgage and save you thousands of dollars over the course of your loan: Make extra payments that go to your loan principal. Borrowers pay extra on principal by employing various techniques. For many people,Perhaps the simplest way to organize this process is by making one extra payment every year. If you can't afford to pay an extra whole payment in one month, you can divide your payment by 12 and pay that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every two weeks. These options differ a little in reducing the total interest paid and reducing payback length, but each will significantly shorten the length of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
It may not be possible for you to pay extra every month or even every year. But it's important to note that most mortgages allow you to make additional payments at any time. You can take advantage of this provision to pay extra on your principal when you come into extra money. If, for example, you were to receive a very large gift or tax refund five years into your mortgage, you could pay a portion of this windfall toward your mortgage loan principal, which would result in enormous savings and a shorter payback period. Unless the loan is quite large, even modest amounts applied early in the loan period can yield huge savings over the duration of the loan.
Churchill Mortgage Company can walk you Churchill Mortgage Company has your mortgage answers. Give us a call: (703) 551-4107.