Additional Payments Yield Big Savings

	Looking for mortgage advice? We will be glad to assist you! Give us a call today at 516 536-2525. Want to get started? Apply Here.

Making regular additional payments on your loan principal will provide enormous savings. People accomplish this goal in several different ways. Making one extra payment one time per year may be the simplest to arrange. If you can't pay an additional whole payment all at once, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Another popular option is to pay a half payment every two weeks. The result is you will make one extra monthly payment each year. Each option yields different results, but each will significantly shorten the duration of your mortgage and lower your total interest paid.

Additional One-time payment

Some folks can't manage extra payments. Keep in mind that almost all mortgage contracts will allow you to make additional payments to your principal at any time. Any time you come into extra money, consider using this provision to pay an additional one-time payment on mortgage principal.

For example: five years after buying your home, you receive a larger than expected tax refund,a very large inheritance, or a non-taxable cash gift; , investing several thousand dollars into your mortgage principal will significantly shorten the period of your loan and save a huge amount on interest over the life of the mortgage loan. For most loans, even this modest amount, paid early in the loan period, could offer big savings in interest and in the length of the loan.

G & M Wolkenberg Inc. can walk you G & M Wolkenberg Inc. can answer questions about these interest savings and many others. Give us a call at 516 536-2525.