Simple Ways to Save Big on Your Mortgage
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Paying consistent additional payments on your loan principal will yield significant returns. You can pay more on principal in many different ways. For many people,Perhaps the simplest way to keep track is to make one extra mortgage payment per year. If you can't afford to pay an additional whole payment in one month, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Another very popular option is to pay a half payment every other week. The effect here is that you make one extra monthly payment each year. Each of these options produces different results, but each will significantly shorten the length of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
Some borrowers just can't make any extra payments. But you should remember that most mortgage contracts allow additional payments at any time. Whenever you get some extra money, you can use this rule to pay a one-time additional payment on your principal.
For example: several years after buying your home, you get a huge tax refund,a very large inheritance, or a cash gift; , paying a few thousand dollars into your mortgage principal will reduce the period of your loan and save a huge amount on interest paid over the duration of the mortgage loan. Unless the mortgage loan is quite large, even modest amounts applied early can produce huge benefits over the life of the loan.
Ocean Mortgage has your mortgage answers. Give us a call: 408-823-2321.