Mortgage Saving

Paying regular additional payments on your principal can yield big returns. People make this happen in several ways. For many people,Perhaps the simplest way to organize this process is to make 1 extra payment per year. If you can’t afford to pay an extra whole payment all at once, you can divide your payment by 12 and pay that additional amount monthly. Another very popular option is to pay a half payment every other week. The effect here is that you make one extra monthly payment in a year. These options differ a little in lowering the total interest paid and shortening payback length, but each will significantly reduce the duration of your mortgage and lower the total interest you will pay over the duration of the loan.

Additional One-time payment

Some folks just can’t make any extra payments. But you should remember that most mortgage contracts allow additional principal payments at any time. You can take advantage of this provision to pay extra on your mortgage principal when you get some extra money. If, for example, you were to receive an unexpected windfall just a few years into your mortgage, paying several thousand dollars into your mortgage principal will significantly shorten the repayment duration of your loan and save a huge amount on mortgage interest over the life of the mortgage loan. Unless the loan is quite large, even small amounts applied early can yield huge benefits over the life of the loan.

Channel Mortgage LLC can walk you through the pitfalls of getting a mortgage. Give us a call at 7186399500.