Save on Your Mortgage
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There's a trick to significantly reduce the length of your mortgage and save you thousands of dollars in interest: Make extra payments that apply to your principal. Borrowers employ various techniques to meet this goal. For many people,Perhaps the easiest way to organize this process is by making 1 additional mortgage payment a year. If you can't afford to pay an additional whole payment in one month, you can divide your payment by 12 and write a check for that additional amount monthly. Finally, you can commit to paying a half payment every other week. These options differ a little in lowering the total interest paid and shortening payback length, but they will all significantly shorten the length of your mortgage and lower your total interest paid.
One-time Additional Payment
It may not be possible for you to pay extra every month or even every year. But remember that most mortgage contracts allow you to make additional payments at any time. Any time you come into unexpected money, consider using this provision to pay an additional one-time payment toward your principal.
For example: a few years after buying your home, you receive a huge tax refund,a very large inheritance, or a non-taxable cash gift; , paying several thousand dollars into your home's principal can significantly reduce the period of your loan and save a huge amount on interest over the duration of the loan. Unless the mortgage loan is very large, even a few thousand dollars applied early can yield huge benefits over the duration of the loan.
Kota Realty & Mortgage Services, Inc can answer questions about these interest savings and many others. Give us a call at (214) 317-4272.