Save on your Mortgage
There's a simple trick to reduce the repayment period of your mortgage and save thousands over the course of your loan: Make extra payments that apply toward the principal. People use different methods to accomplish this goal. For many people,Perhaps the easiest way to keep track is by making 1 additional mortgage payment per year. If you can't afford to pay an extra 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 two weeks. The effect here is that you will make one extra monthly payment every year. Each option produces different results, but each will significantly reduce the duration of your mortgage and lower your total interest paid.
Additional One-time payment
Some folks can't manage any extra payments. But it's important to note that most mortgages allow additional principal payments at any time. You can take advantage of this rule to pay down your principal any time you come into extra money. If, for example, you receive an unexpected windfall three years into your mortgage, paying a few thousand dollars into your home's principal will reduce the repayment duration of your loan and save a huge amount on interest over the duration of the mortgage loan. For most loans, even a small amount, paid early in the mortgage, could offer big savings in interest and length 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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