If you happen to have some extra money on hand and you want to speed up the process of claiming full ownership of your home, then we have good news! By sending in extra money each month or making an extra payment at the end of the year you can speed up the process of paying off your loan.
When you send extra money, be sure to indicate that the excess payment is to be applied to the principal, not the interest, and keep records. For quick reference, principal is the amount you actually owe, while interest is the cost of borrowing the money.
Remember that payment applied to loan principal is not tax-deductible. Most lenders allow loan prepayment, but some loans may have prepayment penalties. Make sure to check with your lender for details before deciding what you want to do.
At Title Junction we care about helping you stay informed throughout your real estate transaction. Have questions? Give us a call at 239.415.6574.
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