Huge Interest Savings: Available to Anyone with a Mortgage

Paying consistent additional payments on the principal will provide huge savings. Borrowers accomplish this goal in several ways. Paying 1 additional payment one time every year may be the simplest to arrange. But many people can't swing such an enormous additional payment, so splitting one extra payment into twelve additional monthly payments works too. Another option is to pay a half payment every two weeks. The result is you make one additional monthly payment every year. These options differ slightly in lowering the final payback amount and reducing payback length, but each will significantly reduce the duration of your mortgage and lower your total interest paid.

One-time Additional Payment

It may not be possible for you to pay down your principal every month or even every year. But remember that most mortgages will allow you to make additional principal payments at any time. You can benefit from this provision to pay down your mortgage principal any time you get some extra money. Here's an example: several years after buying your home, you get a huge tax refund,a large inheritance, or a non-taxable cash gift; , investing several thousand dollars into your mortgage principal will shorten the duration of your loan and save a huge amount on mortgage interest paid over the duration of the loan. Unless the loan is quite large, even a few thousand dollars applied early in the loan period can produce huge savings over 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.