Mortgage Saving Tips
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Paying regular additional payments toward the loan principal will provide huge savings. Borrowers pay against principal in many different ways. Paying a single extra payment once every year is probably the simplest to keep track of. If you can't afford to pay an extra 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 very popular option is to pay half of your payment every other week. The effect here is that you will make one extra monthly payment in a year. These options differ a little in lowering the total interest paid and shortening payback length, but they will all significantly reduce the length of your mortgage and lower your total interest paid.
Additional One-time payment
Some borrowers can't manage extra payments. But it's important to note that most mortgages allow additional principal payments at any time. You can benefit from this provision to pay down your mortgage principal when you come into extra money. For example: a few years after moving into your home, you get a huge tax refund, a very large legacy, or a non-taxable cash gift; , you could pay this windfall toward your mortgage loan principal, resulting in significant savings and a shortened loan period. Unless the loan is quite large, even modest amounts applied early in the loan period can yield huge savings over the duration of the loan.
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