Extra Payments Provide Huge Savings

Making consistent additional payments on your principal will yield enormous returns. You can do this in various ways. Paying a single extra payment one time every year is probably the easiest to track. If you can't pay an additional whole payment all at once, you can divide that payment by 12 and pay that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every two weeks. Each option yields different results, but each will significantly reduce the length 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 you should remember that most mortgages allow you to make additional principal payments at any time. You can benefit from this provision to pay extra on your mortgage principal any time you get some extra money. For example: a few years after moving into your home, you receive a very large tax refund,a large legacy, or a cash gift; , you could apply a portion of this windfall toward your loan principal, which would result in significant savings and a shorter payback period. Unless the loan is very large, even modest amounts applied early can yield huge savings over the life of the loan.

American Mortgage Advisers, Inc can walk you American Mortgage Advisers, Inc can answer questions about these interest savings and many others. Give us a call at 2148657442.