Save on your Mortgage Loan

Paying consistent extra payments on the principal balance will yield singificant savings. People make this happen in a few ways. For many people,Perhaps the simplest way to keep track is by making one additional payment every year. If you can't afford to pay an additional whole payment all at once, you can divide that payment by 12 and pay that additional amount monthly. Another very popular option is to pay a half payment every two weeks. The result is you make one additional monthly payment every year. These options differ a little in lowering the total interest paid and shortening payback length, but each will significantly shorten the duration of your mortgage and lower your total interest paid.

One-time Additional Payment

It may not be possible for you to pay more every month or even every year. But you should remember that most mortgage contracts will allow additional payments at any time. Whenever you come into unexpected money, consider using this provision to make an additional one-time payment on principal. For example: several years after moving into your home, you get a huge tax refund,a large legacy, or a cash gift; , you could apply this windfall toward your loan principal, resulting in enormous savings and a shorter payback period. For most loans, even a modest amount, paid early in the mortgage, could offer big savings in interest and duration of the loan.

Farm Credit of the Virginias can walk you At Farm Credit of the Virginias, we answer questions about interest-saving strategies almost every day. Call us at (800) 919-3276.