Big Interest Savings: Available to Anyone
Making regular additional payments on your principal balance will yield huge returns. Borrowers use different methods to meet this goal. For many people,Perhaps the simplest way to keep track is to make 1 extra mortgage payment per year. However, some folks can't swing such a large additional expense, so splitting an extra payment into twelve extra monthly payments works too. Another very popular option is to pay half of your payment every other week. The effect here is that you make one extra monthly payment every year. Each of these options produces slightly different results, but each will significantly reduce the length of your mortgage and lower your total interest paid.
Additional One-time payment
Some borrowers can't manage extra payments. But it's important to note that most mortgages allow you to make additional principal payments at any time. Any time you get some unexpected cash, consider using this rule to pay an additional one-time payment toward principal.
If, for example, you were to receive a large gift or tax refund three years into your mortgage, investing several thousand dollars into your home's principal can reduce the duration of your loan and save a huge amount on mortgage interest over the duration of the mortgage loan. Unless the loan is quite large, even small amounts applied early in the loan period can produce huge benefits over the duration of the loan.
Family Mortgage Company of Hawaii, Inc. NMLS #244497 can walk you Family Mortgage Company of Hawaii, Inc. NMLS #244497 can answer questions about these interest savings and many others. Give us a call at (808) 935-0678.
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