Huge Interest Savings: Available to Anyone

Paying consistent extra payments toward your loan principal can yield huge returns. Borrowers pay extra in several different ways. For many people,Perhaps the easiest way to keep track is to make 1 extra mortgage payment every year. But some folks will not be able to afford such a large extra payment, so splitting a single extra payment into 12 extra monthly payments is a great option too. Another option is to pay half of your payment every two weeks. The result is you make one extra monthly payment every year. These options differ slightly in lowering the final payback amount and reducing payback length, but each will significantly shorten the length of your mortgage and lower your total interest paid.

Additional One-time payment

It may not be possible for you to pay down your principal every month or even every year. Keep in mind that virtually all mortgage contracts will allow you to make additional payments to your principal at any time. You can take advantage of this provision to pay down your mortgage principal any time you come into extra money. Here's an example: five years after buying your home, you get a very large tax refund,a very large inheritance, or a cash gift; , you could pay a portion of this windfall toward your mortgage loan principal, which would result in enormous savings and a shortened loan period. For most loans, even a modest amount, paid early in the mortgage, could offer big savings in interest and in the duration of the loan.

Atlantic Financial Services can walk you Atlantic Financial Services can answer questions about these interest savings and many others. Call us at (732) 969-9300.

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