The process of paying the principal and interest on a loan through regularly scheduled installments.
Here are some tips for how to make your amortization work for you and pay down your mortgage ahead of schedule!
For our examples we are assuming a 30 year fixed $200,000 mortgage at 4.5%.
Pay an extra $100 each month = Knock 5 Years off your Loan and save over $30,000 In Interest!
Make an extra payment each year = Knock 4 Years off your Loan and save over $26,000 In Interest!
Paying your mortgage bi-weekly will add up to an extra payment each year!
There are 52 weeks in a year and that means 26 half payments OR 13 FULL payments!
Contact your servicer to see if you have the option of paying bi-weekly mortgage payments or make "payments"
to your savings account and have the commitment to pay from there.
I find that making (1) extra payment per year (or more) ON YOUR OWN is the way to go. Be sure to note on your payment that you are making an additional principal payment and state the amount or your lender may apply it to payments and not principal. This is important!!
Call me for more tips.
928 649-9888 / 928-301-3898
LET MY 35 YEARS OF EXPERIENCE WORK FOR YOU!!