Making regular additional payments on your principal balance will provide significant returns. Borrowers employ various techniques to meet this goal. Making 1 additional full payment one time a year is probably the easiest 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 pay that additional amount monthly. Finally, you can pay a half payment every other week. Each option produces different results, but each will significantly reduce the duration of your mortgage and lower your total interest paid. Contact your loan officer for more details. Call us at 360-576-1920
It may not be possible for you to pay down your principal every month or even every year. But you should remember that most mortgage contracts will allow you to make additional payments at any time. You can take advantage of this rule to pay extra on your principal when you come into extra money. If, for example, you were to receive a large gift or tax refund just a few years into your mortgage, paying several thousand dollars into your mortgage principal will shorten the repayment period of your loan and save enormously on mortgage interest over the life of the mortgage loan. For most loans, even this small amount, paid early enough in the mortgage, could offer big savings in interest and in the length of the loan.
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