Huge Interest Savings: Available to Anyone with a Mortgage
There's a simple trick to significantly reduce the length of your mortgage and save you thousands in interest: Make extra payments which are applied to your loan principal. People accomplish this goal in a few different ways. For many people,Perhaps the simplest way to organize this process is to make 1 extra mortgage payment per year. But some people will not be able to pull off such a large extra expense, so dividing a single extra payment into 12 additional monthly payments works as well. Another very popular option is to pay half of your payment every two weeks. The result is you make one extra monthly payment in a year. Each of these options produces different results, but they will all significantly shorten the length of your mortgage and lower your total interest paid.
Additional One-time payment
It may not be possible for you to pay extra every month or even every year. Keep in mind that virtually all mortgage contracts will permit you to make additional payments to your principal at any point during repayment. You can benefit from this provision to pay extra on your mortgage principal when you come into extra money. If, for example, you receive a very large gift or tax refund just a few years into your mortgage, you could pay this money toward your mortgage loan principal, resulting in huge savings and a shortened payback period. For most loans, even this relatively small amount, paid early in the mortgage, could offer huge savings in interest and in the duration of the loan.
Family Mortgage Company of Hawaii, Inc. NMLS #244497 can walk you the mortgage process. Give us a call: (808) 935-0678.
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