Huge Savings on Interest: Available to Anyone with a Mortgage

Making regular extra payments on the principal yields enormous returns. Borrowers can do this in various ways. Making 1 extra payment once every year is likely the simplest to arrange. If you can't afford to pay an extra whole payment in one month, you can divide your payment by 12 and write a check for that additional amount monthly. Another option is to pay half of your payment every two weeks. The effect here is that you will make one extra monthly payment every year. Each of these options yields slightly different results, but each will significantly shorten the duration of your mortgage and lower the total interest you will pay over the duration of the loan.

Additional One-time payment

It may not be possible for you to pay down your principal every month or even every year. But it's important to note that most mortgages will allow you to make additional principal payments at any time. Whenever you come into extra cash, you can use this provision to make a one-time additional payment on your mortgage principal.

If, for example, you were to receive an unexpected windfall five years into your mortgage, you could apply this money toward your loan principal, resulting in enormous savings and a shorter loan period. Unless the mortgage loan is very large, even a few thousand dollars applied early can yield huge benefits over the duration of the loan.

Guaranty Federal Mortgage can walk you Guaranty Federal Mortgage can answer questions about these interest savings and many others. Call us at 9723340566.