Huge Interest Savings: Available to Anyone
Shopping for a mortgage? We will be glad to assist you! Call us at 903-561-2603. Ready to get started? Apply Here
Making consistent extra payments toward your principal will provide enormous returns. Borrowers can pay more on principal by employing various techniques. For many people,Perhaps the easiest way to keep track is to make one extra payment every year. But many people won't be able to pull off such a large additional expense, so dividing a single additional payment into 12 additional monthly payments works as well. Finally, you can commit to paying half of your mortgage payment every two weeks. These options differ a little in reducing the final payback amount and reducing payback length, but each will significantly reduce the duration of your mortgage and lower the total interest paid over the life of the loan.
Lump Sum Extra Payment
Some borrowers just can't make extra payments. But remember that most mortgage contracts allow you to make additional payments at any time. Any time you come into unexpected money, consider using this rule to pay an additional one-time payment on your principal. Here's an example: several years after moving into your home, you receive a larger than expected tax refund,a very large legacy, or a non-taxable cash gift; , you could pay a portion of this windfall toward your mortgage loan principal, which would result in significant savings and a shorter loan period. For most loans, even this relatively modest amount, paid early in the mortgage, could offer big savings in interest and in the length of the loan.
Cooperative Teachers Credit Union can walk you through the mortgage process. Give us a call: 903-561-2603.