Huge Savings on Interest: Available to Anyone with a Mortgage

Paying consistent additional payments on your principal balance will yield singificant returns. Borrowers make this happen in a few ways. For many people,Perhaps the easiest way to organize this process is to make one additional payment per year. But some people won't be able to afford such an enormous additional expense, so dividing an additional payment into 12 extra monthly payments is a fine option too. Another option is to pay a half payment every two weeks. The result is you will make one additional monthly payment in a year. Each of these options yields slightly different results, but each will significantly shorten the length of your mortgage and lower the total interest paid over the duration of the loan.

Lump Sum Extra Payment

It may not be possible for you to pay extra every month or even every year. Keep in mind that virtually all mortgages will permit you to pay extra on your principal at any time. You can take advantage of this provision to pay down your principal when you come into extra money. If, for example, you were to receive a very large gift or tax refund just a few years into your mortgage, you could apply a portion of this money toward your mortgage loan principal, resulting in enormous savings and a shorter payback period. For most loans, even a relatively small amount, paid early enough in the mortgage, could offer huge savings in interest and in the length of the loan.

Boardwalk Mortgage can walk you Boardwalk Mortgage can answer questions about these interest savings and many others. Call us at 1-800-606-2794.