Huge Interest Savings: Available to Anyone with a Mortgage

Paying consistent additional payments on your loan principal will yield enormous savings. People pay extra in several ways. Making a single additional payment once per year is perhaps the easiest to arrange. However, some folks will not be able to swing this huge additional payment, so dividing one additional payment into twelve extra monthly payments is a great option too. Finally, you can pay half of your mortgage payment every two weeks. Each of these options produces different results, but they will all 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 more every month or even every year. But you should remember that most mortgages will allow you to make additional payments at any time. Whenever you come into unexpected cash, you can use this provision to make a one-time additional payment on your principal. If, for example, you receive a surprise windfall five years into your mortgage, you could pay this windfall toward your loan principal, resulting in enormous savings and a shortened loan period. For most loans, even this modest amount, paid early enough in the mortgage, could offer huge savings in interest and in the duration of the loan.

Ashok Lakshmanan can walk you Ashok Lakshmanan can answer questions about these interest savings and many others. Give us a call at 630-717-3600.