Save on your Mortgage Loan
Making consistent extra payments on the principal balance can yield singificant returns. People accomplish this goal in a few ways. Paying one additional payment one time every year may be the easiest to keep track of. However, many people can't pull off such a large additional expense, so splitting a single additional payment into 12 additional monthly payments is a fine option too. Finally, you can pay a half payment every other week. These options differ a little in reducing the final payback amount and shortening payback length, but each will significantly reduce the duration of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
It may not be possible for you to pay extra every month or even every year. But it's important to note that most mortgage contracts will allow additional principal payments at any time. Whenever you come into extra money, consider using this provision to make an additional one-time payment toward your mortgage principal.
For example: a few years after buying your home, you receive a very large tax refund,a large legacy, or a cash gift; , investing several thousand dollars into your mortgage principal can significantly shorten the repayment duration of your loan and save enormously on mortgage interest over the life of the loan. Unless the mortgage loan is quite large, even modest amounts applied early in the loan period can yield 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. Call us: (808) 935-0678.
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