Mortgage Saving Tips
There's a trick to significantly reduce the length of your mortgage and save you thousands over the course of your loan: Make extra payments that apply toward your principal. People use different methods to accomplish this goal. For many people,Perhaps the simplest way to organize this process is to make 1 additional mortgage payment a year. If you can't pay an additional whole payment all at once, you can divide your payment by 12 and write a check for that additional amount monthly. Another popular option is to pay a half payment every two weeks. The effect here is that you make one extra monthly payment in a year. Each of these options yields slightly different results, but each will significantly shorten the length of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
Some borrowers just can't make extra payments. Remember that virtually all mortgages will permit you to pay extra on your principal at any point during repayment. Any time you come into extra money, consider using this rule to pay an additional one-time payment on principal.
If, for example, you receive a surprise windfall three years into your mortgage, you could pay a portion of this money toward your loan principal, resulting in huge savings and a shortened loan period. For most loans, even this modest amount, paid early in the loan period, could offer big 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 can answer questions about these interest savings and many others. Give us a call at (808) 935-0678.
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