Save on Your Mortgage
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Paying consistent additional payments on the principal balance yields significant savings. Borrowers can accomplish this using a few different techniques. For many people,Perhaps the easiest way to keep track is to make one additional payment a year. However, some folks can't afford this huge additional expense, so splitting an extra payment into twelve additional monthly payments works too. Another popular option is to pay a half payment every other week. The result is you will make one additional monthly payment each year. These options differ slightly in lowering the final payback amount and shortening payback length, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.
Additional One-time payment
Some people can't manage extra payments. But remember that most mortgage contracts allow additional principal payments at any time. Any time you get some unexpected cash, you can use this provision to pay a one-time additional payment on principal. If, for example, you were to receive a very large gift or tax refund five years into your mortgage, you could apply a portion of this money toward your mortgage loan principal, which would result in huge savings and a shorter loan period. Unless the loan is very large, even small amounts applied early in the loan period can yield huge benefits over the duration of the loan.
Keypoint Mortgage can answer questions about these interest savings and many others. Give us a call: 201-998-9050.
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