Save on Your Mortgage
Paying consistent extra payments toward the principal provides huge returns. You can accomplish this using a few different techniques. Making a single additional payment once per year is probably the simplest to keep track of. However, many people won't be able to afford such an enormous extra payment, so dividing a single extra payment into twelve additional monthly payments is a fine option too. Another very popular option is to pay a half payment every two weeks. The result is you will make one extra monthly payment in a year. Each of these options produces different results, but each will significantly reduce the duration of your mortgage and lower the total interest you will pay over the life of the loan.
Lump-sum Additional Payment
Some people just can't make any extra payments. But it's important to note that most mortgages allow you to make additional payments at any time. You can take advantage of this rule to pay down your mortgage principal any time you come into extra money. For example: several years after buying your home, you get a huge tax refund,a large inheritance, or a non-taxable cash gift; , investing several thousand dollars into your mortgage principal will significantly reduce the repayment period of your loan and save a huge amount on mortgage interest paid over the life of the loan. For most loans, even this modest amount, paid early in the mortgage, could offer huge savings in interest and length of the loan.
North American Financial nmls#180736 has your mortgage answers. Call us at (702) 524-1376.