Huge Savings on Interest: Available to Anyone with a Mortgage
There's a trick to reduce the repayment period of your mortgage and save thousands over the course of your loan: Make extra payments that are applied toward your principal. Borrowers can do this in various ways. For many people,Perhaps the easiest way to organize this process is by making one extra payment a year. Of course, some folks can't afford such a large additional payment, so dividing an additional payment into 12 extra monthly payments works as well. Another popular option is to pay half of your payment every two weeks. The result is you make one additional monthly payment every year. Each of these options produces slightly different results, but they will all significantly shorten the length of your mortgage and lower the total interest paid over the duration of the loan.
Additional One-time payment
Some folks can't manage extra payments. But remember that most mortgage contracts will allow additional payments at any time. Whenever you get some extra money, you can use this provision to make an additional one-time payment on your principal. If, for example, you were to receive an unexpected windfall five years into your mortgage, you could apply this money toward your mortgage loan principal, which would result in enormous savings and a shortened loan period. Unless the mortgage loan is very large, even a few thousand dollars applied early can yield huge benefits over the duration of the loan.
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