Huge Savings on Interest: Available to Anyone

Making regular extra payments on your loan principal yields huge returns. Borrowers accomplish this goal in a few ways. Making a single extra payment one time a year is probably the easiest to track. If you can't pay an additional whole payment in one month, 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 they will all significantly reduce the duration of your mortgage and lower your total interest paid.

Lump-sum Additional Payment

It may not be possible for you to pay down your principal every month or even every year. But you should remember that most mortgages will allow you to make additional payments at any time. You can benefit from this provision to pay extra on your principal when you come into extra money. If, for example, you receive an unexpected windfall just a few years into your mortgage, paying a few thousand dollars into your mortgage principal will significantly shorten the repayment duration of your loan and save a huge amount on mortgage interest over the duration of the mortgage loan. For most loans, even a small amount, paid early enough in the loan period, could offer huge savings in interest and in the length of the loan.

Northeast Bancorp of America, Inc. can walk you Northeast Bancorp of America, Inc. has your mortgage answers. Call us: (440) 234-9660.

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