Save on your Mortgage Loan
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Here's a simple trick to reduce the repayment period of your mortgage and save you thousands in interest: Make extra payments that go to your loan principal. People employ various techniques to accomplish this goal. Making 1 extra full payment one time every year is probably the easiest to track. If you can't afford to pay an additional whole payment in one month, you can divide that payment by 12 and write a check for that additional amount monthly. Finally, you can pay half of your mortgage payment every other week. These options differ a little in lowering the final payback amount and shortening payback length, but they will all significantly reduce the length of your mortgage and lower your total interest paid.
Additional One-time payment
Some folks just can't make any extra payments. Remember that virtually all mortgage contracts will allow you to pay extra on your principal at any point during repayment. Whenever you get some unexpected cash, consider using this provision to pay an additional one-time payment on mortgage principal.
If, for example, you were to receive a very large gift or tax refund four years into your mortgage, paying a few thousand dollars into your mortgage principal can significantly reduce the repayment period of your loan and save enormously on mortgage interest paid over the life of the mortgage loan. For most loans, even a relatively modest amount, paid early enough in the mortgage, could offer big savings in interest and in the length of the loan.
Korene and the KLCSLoanTeam can and will walk you through the mortgage process. Give us a call at 623-340-0934.