Huge Savings on Interest: Available to Anyone
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Here's a simple trick to reduce the repayment period of your mortgage and save you thousands of dollars in interest: Make extra payments that go toward the loan principal. You can accomplish this in several ways. For many people,Perhaps the easiest way to keep track is to make 1 extra payment per year. Of course, many folks won't be able to pull off such a large additional expense, so dividing a single additional payment into 12 extra monthly payments is a great option too. Finally, you can pay a half payment every other week. Each of these options yields different results, but each will significantly reduce the length of your mortgage and lower the total interest you will pay over the duration of the loan.
Additional One-time payment
It may not be possible for you to pay down your principal every month or even every year. But it's important to note that most mortgages will allow you to make additional payments at any time. Any time you get some extra cash, you can use this rule to make a one-time additional payment on your mortgage principal.
For example: several years after buying your home, you receive a very large tax refund,a very large inheritance, or a cash gift; , you could pay this windfall toward your loan principal, which would result in enormous savings and a shorter loan period. For most loans, even a modest amount, paid early in the loan period, could offer huge savings in interest and length of the loan.
The Mortgage Superstore can get you past the pitfalls of getting a mortgage. Give us a call at 575-769-9006.