Simple Ways to Save on Your Mortgage
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Here's a simple trick to reduce the repayment period of your mortgage and save thousands of dollars in interest: Make extra payments that go toward your loan principal. You pay against principal in many different ways. For many people,Perhaps the simplest way to keep track is to make 1 additional mortgage payment every year. If you can't pay an extra whole payment in one month, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Another popular option is to pay a half payment every other week. The result is you will make one additional monthly payment in a year. Each of these options yields different results, but each will significantly shorten 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 can't manage any extra payments. But remember that most mortgage contracts allow additional principal payments at any time. Any time you come into unexpected money, consider using this rule to pay an additional one-time payment toward your principal.
If, for example, you receive a large gift or tax refund five years into your mortgage, you could apply this windfall toward your mortgage loan principal, resulting in significant savings and a shorter loan period. Unless the loan is very large, even a few thousand dollars applied early can yield huge benefits over the duration of the loan.
Enotiva Lending Solutions Inc can get you past the pitfalls of getting a mortgage. Give us a call at 407-496-3555.