Mortgage Brokers Mortgage - Home Financing Made Easy | Seite 3

Top Reasons to Consider Making
Lump-Sum Mortgage Payments
 You have to understand that your regular monthly installments are only
going to tackle the interest and may do a little to lower the principal. The
lump-sum contributions are going to cover the principal though. Therefore,
it is a great idea to make larger contributions whenever possible to bring
the principal down.
 By making lump-sum payments, you will end up saving a lot of money on
the internet along with saving years on your amortization period – the
amount of time you require to completely clear your loan is the
amortization period. By reducing this period, you will wind up paying less
interest, which is going translate into big savings by the tie you pay off your
loan completely.
 Expect large savings when making larger payments. For instance, you may
end up saving $17,774 in interest if you pay $2,000 per year on your
$300,000 mortgage. You will also end up paying off your loan at least 6
years sooner – that is when you have a mortgage at the rate of 2.99% with
a 25-year amortization.