Mortgage Savings

Paying regular additional payments on your loan principal can yield big returns. Borrowers make this happen in several ways. For many people,Perhaps the easiest way to organize this process is to make 1 extra payment a year. If you can't pay an extra 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 of these options produces different results, but each will significantly reduce the length of your mortgage and lower the total interest you will pay over the duration of the loan.

Additional One-time payment

Some borrowers can't manage extra payments. Keep in mind that almost all mortgage contracts will allow you to pay extra on your principal at any point during repayment. Whenever you come into unexpected cash, consider using this provision to pay an additional one-time payment toward your principal. For example: several years after buying your home, you get a huge tax refund,a large inheritance, or a cash gift; , paying a few thousand dollars into your mortgage principal will significantly reduce the duration of your loan and save enormously on interest paid over the duration of the mortgage loan. Unless the loan is quite large, even modest amounts applied early in the loan period can produce huge savings over the duration of the loan.

Farm Credit of the Virginias can walk you Farm Credit of the Virginias can answer questions about these interest savings and many others. Call us: (800) 919-3276.

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