Big Interest Savings: Available to Anyone with a Mortgage

Paying consistent additional payments toward your principal balance yields big savings. You can accomplish this using a few different techniques. For many people,Perhaps the simplest way to organize this process is to make one additional payment per year. If you can't pay an extra whole payment all at once, you can divide your payment by 12 and write a check for that additional amount monthly. Finally, you can pay a half payment every two weeks. These options differ a little in reducing the total interest paid and shortening payback length, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.

Lump-sum Additional Payment

Some folks just can't make extra payments. But remember that most mortgages will allow you to make additional principal payments at any time. Any time you come into unexpected money, you can use this rule to pay a one-time additional payment toward your mortgage principal.

Here's an example: a few years after buying your home, you get a larger than expected tax refund,a very large inheritance, or a cash gift; , you could pay this money toward your mortgage loan principal, resulting in significant savings and a shorter payback period. For most loans, even a relatively modest amount, paid early enough in the loan period, could offer big savings in interest and length of the loan.

AmeriBest Mortgage can walk you AmeriBest Mortgage has your mortgage answers. Call us at 3217777277.