Big Interest Savings: Available to Anyone with a Mortgage

Paying consistent additional payments on your loan principal yields singificant returns. Borrowers pay against principal in various ways. For many people,Perhaps the easiest way to organize this process is by making one extra payment every year. If you can't pay an additional whole payment all at once, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Another popular option is to pay half of your payment every other week. The effect here is that you will make one additional monthly payment in a year. These options differ a little in lowering the total interest paid and reducing payback length, but they will all significantly shorten the length of your mortgage and lower the total interest paid over the duration of the loan.

Additional One-time payment

It may not be possible for you to pay extra every month or even every year. But it's important to note that most mortgage contracts will allow you to make additional payments at any time. Whenever you get some unexpected cash, consider using this provision to make an additional one-time payment on mortgage principal. For example: a few years after buying your home, you get a larger than expected tax refund,a large inheritance, or a cash gift; , investing several thousand dollars into your mortgage principal can significantly shorten the duration of your loan and save a huge amount on mortgage interest paid over the duration of the mortgage loan. Unless the mortgage loan is quite large, even a few thousand dollars applied early can produce huge benefits over the duration of the loan.

VSI Home Lending can walk you VSI Home Lending can answer questions about these interest savings and many others. Give us a call at 2603382561.

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