Save on your Mortgage Loan
Making consistent extra payments on your loan principal will provide enormous savings. People make this happen in a few ways. For many people,Perhaps the easiest way to organize this process is to make one extra mortgage payment per year. If you can't pay an extra whole payment in one month, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Another option is to pay half of your payment every other week. The result is you will make one extra monthly payment every year. Each of these options yields different results, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.
Additional One-time payment
It may not be possible for you to pay more every month or even every year. But it's important to note that most mortgage contracts allow additional payments at any time. Whenever you get some extra money, you can use this provision to pay an additional one-time payment toward your principal.
Here's an example: five years after buying your home, you receive a very large tax refund,a large legacy, or a cash gift; , paying a few thousand dollars into your mortgage principal will shorten the repayment duration of your loan and save a huge amount on interest over the duration of the loan. Unless the mortgage loan is quite large, even a few thousand dollars applied early in the loan period can produce huge benefits over the duration of the loan.
Ashok Lakshmanan can walk you Ashok Lakshmanan has your mortgage answers. Give us a call: 630-717-3600.