Additional Payments Yield Big Savings

Making regular additional payments toward the principal provides enormous savings. Borrowers pay against principal by employing various techniques. Paying one extra payment once a year is likely the easiest to arrange. But some people can't afford such a large extra payment, so splitting an additional payment into twelve extra monthly payments works as well. Finally, you can commit to paying half of your mortgage payment every two weeks. Each option produces slightly different results, but they will all significantly reduce the length of your mortgage and lower your total interest paid.

One-time Additional Payment

Some folks can't manage extra payments. Remember that almost all mortgages will allow you to make additional payments to your principal at any point during repayment. Any time you get some unexpected cash, you can use this provision to pay an additional one-time payment toward mortgage principal.

If, for example, you were to receive an unexpected windfall three years into your mortgage, you could pay this money toward your mortgage loan principal, which would result in huge savings and a shortened payback period. For most loans, even this small amount, paid early enough in the mortgage, could offer huge savings in interest and length of the loan.

VSI Home Lending can walk you through the pitfalls of getting a mortgage. Call us at 2603382561.

Got a Question?

Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.

Your Information
Your Question
By checking the box, you agree that VSI Home Lending may call/text you about your inquiry, which may involve use of automated means and prerecorded/artificial voices.. Message/data rates may apply.

Profile Picture portrait53196.JPG