Additional Payments Yield Huge Mortgage Savings
Paying regular additional payments toward your principal yields huge savings. Borrowers accomplish this goal in a few ways. For many people,Perhaps the simplest way to organize this process is to make one additional payment per year. But some people can't afford such an enormous additional expense, so dividing one additional payment into 12 extra monthly payments works too. Another very popular option is to pay a half payment every other week. The effect here is that you will make one additional monthly payment each year. These options differ a little in lowering the final payback amount and shortening payback length, but each will significantly reduce the length of your mortgage and lower the total interest you will pay over the duration of the loan.
Lump Sum Extra Payment
It may not be possible for you to pay more every month or even every year. But it's important to note that most mortgage contracts will allow additional payments at any time. You can take advantage of this provision to pay extra on your principal when you get some extra money. For example: five years after buying your home, you receive a larger than expected tax refund,a very large legacy, or a non-taxable cash gift; , investing a few thousand dollars into your home's principal can shorten the period of your loan and save a huge amount on interest paid over the duration of the mortgage loan. For most loans, even a small amount, paid early in the loan period, could offer huge savings in interest and in the duration of the loan.
Family Mortgage Company of Hawaii, Inc. NMLS #244497 can walk you Family Mortgage Company of Hawaii, Inc. NMLS #244497 has your mortgage answers. Call us: (808) 935-0678.
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