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Paying consistent extra payments on the loan principal will provide significant savings. You can do this in several ways. Making 1 additional full payment one time a year is probably the easiest to track. If you can't pay an extra whole payment in one month, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can commit to paying a half payment every two weeks. These options differ slightly in reducing the final payback amount and shortening payback length, but they will all significantly shorten the duration of your mortgage and lower your total interest paid.
Lump-sum Additional Payment
It may not be possible for you to pay more every month or even every year. Keep in mind that almost all mortgages will allow you to pay extra on your principal at any time. You can take advantage of this rule to pay extra on your mortgage principal any time you get some extra money. If, for example, you were to receive a large gift or tax refund five years into your mortgage, you could apply this money toward your loan principal, which would result in significant savings and a shorter loan period. For most loans, even a relatively small amount, paid early enough in the mortgage, could offer big savings in interest and length of the loan.
Amcap Mortgage Ltd can get you past the pitfalls of getting a mortgage. Call us: 8329162260.