Huge Interest Savings: Available to Anyone

Making consistent additional payments toward your loan principal will yield enormous savings. Borrowers pay extra on principal by employing various techniques. Paying a single additional payment one time every year is perhaps the easiest to track. But many folks won't be able to afford this huge additional expense, so dividing one additional payment into twelve extra monthly payments works as well. Finally, you can commit to paying a half payment every other week. These options differ a little in lowering the total interest paid and reducing payback length, but they will all significantly reduce the length of your mortgage and lower your total interest paid.

Additional One-time payment

Some folks just can't make any extra payments. But you should remember that most mortgages allow additional principal payments at any time. You can take advantage of this provision to pay extra on your mortgage principal any time you get some extra money.

If, for example, you receive a very large gift or tax refund just a few years into your mortgage, you could apply a portion of this windfall toward your mortgage loan principal, resulting in enormous savings and a shortened payback period. For most loans, even this relatively small amount, paid early enough in the mortgage, could offer big savings in interest and length of the loan.

Atlantic Financial Services can walk you the mortgage process. Give us a call at (732) 969-9300.

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