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How to Reduce Your Mortgage
Cities We Serve
Your VanDyk Mortgage is here to help you when you decide to Purchase a Home or Refinance a Mortgage. Whether in person or online, we close loans in 46 states all over the U.S. seamlessly and easily. We have a wide selection of REAL ESTATE MORTGAGE HOME LOAN PROGRAMS. You can trust us to find the REAL ESTATE MORTGAGE HOME LOAN PROGRAM that's best for you. We have been assisting people like you all over the US focusing primarily on North Carolina and South Carolina for years. We have assisted people in the following cities and states to reach their dreams: Winston Salem, NC--Forsyth County, Kernersville, NC--Forsyth County, Mocksville, NC--Davie County, Greensboro, NC--Guilford County, Germanton, NC—Stokes/Forsyth County, Rural Hall, NC—Forsyth County, King, NC--Stokes/Forsyth County, Mt Airy, NC--Surry County, Raleigh, NC--Wake County, Burlington, NC--Alamance County, Statesville, NC--Iredell County, Wilkesboro, NC--Wilkes County, North Wilkesboro, NC--Wilkes County, Elkin, NC--Surry/Yadkin County, Advance, NC--Davie County, Clemmons, NC--Forsyth County, Lexington, NC--Davidson County, Cary, N.C.--Wake/Chatham County, Chapel Hill N.C.--Orange County, Huntersville, NC-- Mecklenburg County, Monroe, NC--Union County, Mooresville, NC--Iredell County, Charlotte, NC--Mecklenburg County, Matthews, NC--Mecklenburg County, Waxhaw, NC--Union County, Myrtle Beach, SC, Columbia, SC, Charleston, SC several cities in California and Florida to name a few. VanDyk Mortgage, Inc. has branches is most all states in the US, this allows us to lend almost anywhere in the U.S.
One Additional Mortgage Payment a Year
There's a simple trick to significantly reduce the length of your mortgage and save you thousands of dollars. The trick is to make one extra mortgage payment a year and apply that payment toward your loan's principal.
This is the method being used by "Bi-Weekly Mortgage Reduction Services" and "Bi-Weekly Mortgage Savings Programs". Only, when you do it yourself, you don't pay a third party unnecessary set-up costs and fees!
Example: $100,000 loan, 30-year mortgage, 6.5% fixed interest rate
|
Extra Mortgage Payments/ Year |
Principal & Interest |
Additional Monthly Payment |
SAVINGS |
Total Paid |
# of Years |
|
0 |
$632.07 |
0 |
0 |
$227,542.98 |
29.92 / 359 mos. |
|
1 |
$632.07 |
$52.68 |
$29,088.02 |
$198,454.96 |
24.12 / 290 mos. |
|
2 |
$632.07 |
$105.35 |
$46,492.13 |
$181,050.85 |
20.5 /
246 mos. |
|
3 |
$632.07 |
$158.02 |
$58,320.95 |
$169,222.03 |
17.92 / 215 mos. |
|
4 |
$632.07 |
$210.69 |
$66,969.79 |
$160,573.19 |
15.92 / 191 mos. |
|
5 |
$632.07 |
$263.36 |
$73,607.77 |
$153,935.21 |
14.34 / 172 mos. | |
One-time Payment
It may not be possible for you to increase your monthly mortgage payment. Keep in mind that most mortgages will permit you to make additional payments to your principal at anytime. Perhaps, five-years after moving into your home you receive a larger than expected tax return, or an inheritance or a non-taxable cash gift. You could apply this money toward your loan's principal, resulting in significant savings and a shorter loan period.
Example:
With a $100,000, 30-year, 6.5% fixed interest rate mortgage loan, the borrower will pay a total of $227,542.98 to pay back the loan in 30 years. That equals $127,542.98 in interest payments.
If the same borrower makes a one-time $5,000 payment the first day of year 6, he/she will pay a total of $204,710.75 and pay off the loan in 27 years (324 months). That's a savings of $22,832.23 in interest.
Paying Off Entire Payments By Number
Get a copy of your amortization schedule from your lender. Each payment is numbered with the corresponding principal and interest amounts that will be paid for each NUMBERED payment.
You must tell the lender to apply the extra principle to that particular payment number. In the first several years you can eliminate an entire payment with very little added to the principle
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