Huge Interest Savings: Available to Anyone

Paying regular extra payments on your principal balance yields singificant savings. Borrowers pay extra in a few different ways. For many people,Perhaps the easiest way to organize this process is to make one extra payment a year. Of course, many folks won't be able to pull off such a large extra expense, so dividing an extra payment into 12 extra monthly payments is a fine option too. Finally, you can pay a half payment every other week. Each option yields slightly different results, but each will significantly shorten the duration of your mortgage and lower your total interest paid.

Additional One-time payment

It may not be possible for you to pay extra every month or even every year. Remember that almost all mortgages will allow you to pay extra on your principal at any time. Whenever you come into extra money, you can use this rule to pay a one-time additional payment toward mortgage principal.

If, for example, you were to receive a large gift or tax refund just a few years into your mortgage, investing a few thousand dollars into your home's principal will shorten the duration of your loan and save a huge amount on interest paid over the life of the mortgage loan. For most loans, even a small amount, paid early in the loan period, could offer big savings in interest and in the length of the loan.

1st Credential Mortgage Inc can walk you At 1st Credential Mortgage Inc, we answer questions about money-saving strategies every day. Call us at (281) 778-0805.

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