Save Big on your Mortgage Loan
There's a simple trick to significantly reduce the length of your mortgage and save thousands in interest: Make additional payments that apply toward the loan principal. People pay extra in several different ways. For many people,Perhaps the easiest way to organize this process is to make one additional payment every 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 popular option is to pay half of your payment every other week. The result is you will make one extra monthly payment in a year. These options differ a little in reducing the final payback amount and reducing payback length, but each will significantly shorten the duration of your mortgage and lower the total interest you will pay over the life of the loan.
Additional One-time payment
Some folks just can't make any extra payments. But remember that most mortgage contracts allow additional payments at any time. Whenever you get some extra money, you can use this rule to make a one-time additional payment toward principal.
If, for example, you were to receive an unexpected windfall just a few years into your mortgage, paying a few thousand dollars into your home's principal can significantly shorten the period of your loan and save a huge amount on mortgage interest over the duration of the mortgage loan. For most loans, even this relatively modest amount, paid early enough in the loan period, could offer big savings in interest and length 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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