Save on Your Mortgage
Making consistent additional payments on the principal balance will provide big savings. You can pay extra on principal in various ways. Making one additional payment once a year may be the easiest to track. If you can't afford to pay an extra whole payment in one month, you can divide that payment by 12 and write a check for that additional amount monthly. Finally, you can pay half of your mortgage payment every two weeks. These options differ a little in lowering the final payback amount and shortening payback length, but they will all significantly shorten the duration of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
It may not be possible for you to pay extra every month or even every year. Remember that most mortgages will allow you to make additional payments to your principal at any time. Any time you come into extra money, consider using this provision to pay an additional one-time payment on your mortgage principal.
For example: five years after buying your home, you receive a larger than expected tax refund,a very large inheritance, or a non-taxable cash gift; , you could pay a portion of this windfall toward your loan principal, which would result in huge savings and a shortened payback period. For most loans, even a modest amount, paid early enough in the mortgage, could offer huge savings in interest and duration of the loan.
Coleman Mortgage Company can walk you Coleman Mortgage Company has your mortgage answers. Call us: 972-932-9083.