Change Your Mortgage by Making An Additional Payment Each Year!

Change Your Mortgage by Making An Additional Payment Each Year!

One of the most important things to do is to pay down your mortgage in least time. However a commitment to repay your mortgage in 20 or 30 years can be a good choice as it eases down repayment options each month. But wouldn’t it be great if you could cut down on the time period. Perhaps you could cut down on the number of years by just making one extra payment per year. This may be quite tough for you but chances are that you may be able to do it without even realizing it.

An extra payment to your mortgage is worthwhile considering as it can save you thousands of dollars. One single payment is sure to make a difference in the total you owe and it can also knock off years in the time period. You can seek help from your money lender to better understand this. Such information is also available on your amortization statement. One extra payment is sure to bring down the interest rate. If you are not sure then it’s always best to use a mortgage calculator.

You must be wondering as from where I get the extra payment from. While for some people it may not be a strain but for others having such a budget is a dream. Most people get paid every two weeks hence if you use a certain fraction of this money in paying your installments on bimonthly basis then you can save thousands of dollars in the long run. This way you can also cut down on the interest rate and easy repay back what you owe to the money lender. Many mortgage companies allow you to set up and use a bi monthly payment schedule which in turn reduces your stress of repayment.

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