Mortgage Savings Tips
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Making regular extra payments on your principal will yield huge returns. Borrowers can do this in several ways. For many people,Perhaps the easiest way to organize this process is by making one additional mortgage payment a year. If you can't pay an extra whole payment in one month, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can pay half of your mortgage payment every other week. These options differ a little in lowering the final payback amount and reducing payback length, but each will significantly shorten the duration of your mortgage and lower your total interest paid.
Additional One-time payment
It may not be possible for you to pay more every month or even every year. But remember that most mortgages allow you to make additional principal payments at any time. Any time you come into extra cash, consider using this provision to pay an additional one-time payment toward your mortgage principal.
If, for example, you receive a very large gift or tax refund three years into your mortgage, you could pay a portion of this money toward your mortgage loan principal, which would result in huge savings and a shorter loan period. For most loans, even this relatively small amount, paid early in the mortgage, could offer big savings in interest and in the length of the loan.
At Excalibur Mortgage Corporation, we answer questions about interest-saving strategies almost every day. Call us: 714-891-0266.