Huge Savings on Interest: Available to Anyone
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There's a trick to reduce the repayment period of your mortgage and save you thousands in interest: Make additional payments which apply toward your principal. You can pay more on principal in many different ways. For many people,Perhaps the simplest way to keep track is by making 1 additional mortgage payment per year. However, some people can't pull off such a large additional expense, so dividing an extra payment into twelve additional monthly payments works as well. Another very popular option is to pay half of your payment every two weeks. The result is you make one extra monthly payment each year. These options differ slightly in reducing the final payback amount and reducing payback length, but they will all significantly reduce the length of your mortgage and lower your total interest paid.
Additional One-time payment
Some people just can't make any extra payments. Remember that virtually all mortgages will allow you to make additional payments to your principal at any point during repayment. Whenever you get some extra money, consider using this provision to pay a one-time additional payment toward your mortgage principal.
If, for example, you were to receive a surprise windfall five years into your mortgage, paying a few thousand dollars into your home's principal can significantly reduce the repayment period of your loan and save enormously on interest over the life of the loan. Unless the mortgage loan is very large, even modest amounts applied early in the loan period can produce huge savings over the life of the loan.
Mann Mortgage has your mortgage answers. Call us: (808) 264-3715.
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