If you financed your home when you purchased it, you should have been presented with a form that displays the entire amount paid over the life of the loan if all payments are made on time (Truth in Lending Form). At first glance, this can be a frightening figure. However, one simple, easy-to-remember step can save you THOUSANDS on your mortgage. Consistency is the key.
Simply pay an extra payment each year, applied to principal. You can plan to make this extra payment the same time each year (this makes it easy to remember), but the sooner within the year you make the payment, the more interest you will save over the life of the loan. Some people find it convenient in their budget to coincide with their year-end bonus or income tax refund.
Just remember, when you send in the extra payment each year, write on the check: APPLY TO PRINCIPAL. This simple step can save up to 9 years’ worth of payments on a 30-year fixed-rate mortgage. Owning a home shouldn’t be a financial burden - there are lots of ways to capitalize on your investment, and we encourage you to call us for more ways to save money.
If you have questions about moving, building, selecting your first home or moving up to your next home, contact DAVID BRENTON’S TEAM.
When you are serious about moving… put our TEAM to work for you!
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