Extra Payments Provide Huge Savings

Making regular extra payments toward your principal will provide enormous savings. You can accomplish this in various ways. Paying a single additional full payment one time a year is likely the simplest to arrange. If you can't afford to pay an extra whole payment all at once, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Another very popular option is to pay half of your payment every other week. The result is you make one extra monthly payment each year. These options differ slightly in reducing the final payback amount and reducing payback length, but they will all significantly reduce the length of your mortgage and lower the total interest paid over the duration of the loan.

Additional One-time payment

Some folks just can't make any extra payments. Keep in mind that most mortgages will permit you to make additional payments to your principal at any time. Whenever you get some unexpected cash, consider using this provision to make an additional one-time payment on principal. For example: a few years after moving into your home, you receive a very large tax refund,a very large legacy, or a cash gift; , investing several thousand dollars into your mortgage principal can reduce the repayment period of your loan and save a huge amount on interest paid over the duration of the mortgage loan. For most loans, even this relatively small amount, paid early in the loan period, could offer big savings in interest and duration of the loan.

Amity Mortgage LLC can walk you Amity Mortgage LLC can answer questions about these interest savings and many others. Give us a call at (203) 729-6681.

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