Save Big on your Mortgage Loan
Here's a simple trick to reduce the repayment period of your mortgage and save you thousands over the course of your loan: Make extra payments that are applied toward your loan principal. Borrowers use different methods to accomplish this goal. For many people,Perhaps the easiest way to keep track is by making one extra mortgage payment every year. However, some people can't pull off this huge extra expense, so dividing an extra payment into 12 extra monthly payments works as well. Finally, you can pay a half payment every two weeks. These options differ a little in reducing the total interest paid and reducing payback length, but each will significantly shorten the length of your mortgage and lower the total interest you will pay over the life of the loan.
Lump Sum Extra Payment
Some people just can't make any extra payments. Keep in mind that most mortgage contracts will permit you to make additional payments to your principal at any point during repayment. You can take advantage of this provision to pay down your mortgage principal when you come into extra money. For example: several years after moving into your home, you get a very large tax refund,a very large inheritance, or a cash gift; , investing several thousand dollars into your home's principal can reduce the duration of your loan and save a huge amount on mortgage interest paid over the duration of the mortgage loan. For most loans, even a modest amount, paid early in the mortgage, could offer big savings in interest and duration of the loan.
Coleman Mortgage Company can walk you through the pitfalls of getting a mortgage. Give us a call: 972-932-9083.