Mortgage Saving Tips
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Paying consistent additional payments toward your principal balance provides big returns. You pay against principal by employing various techniques. For many people,Perhaps the simplest way to organize this process is to make one additional mortgage payment per year. But many people will not be able to pull off such a large extra payment, so splitting an additional payment into twelve additional monthly payments is a fine option too. Another option is to pay a half payment every other week. The result is you make one extra monthly payment in a year. Each of these options produces slightly different results, but each will significantly reduce the duration of your mortgage and lower the total interest you will pay over the life of the loan.
Additional One-time payment
It may not be possible for you to pay down your principal every month or even every year. But it's important to note that most mortgages allow you to make additional principal payments at any time. You can take advantage of this provision to pay down your principal any time you come into extra money.
For example: five years after buying your home, you receive a huge tax refund,a large legacy, or a non-taxable cash gift; , you could apply this windfall toward your mortgage loan principal, resulting in enormous savings and a shorter loan period. Unless the loan is quite large, even a few thousand dollars applied early can produce huge savings over the duration of the loan.
Keystone Financial Services can get you past the pitfalls of getting a mortgage. Call us: (949) 495-6447.