Save Big on your Mortgage

There's a simple trick to significantly reduce the length of your mortgage and save you thousands over the course of your loan: Make additional payments that go to the principal. Borrowers can do this in several ways. For many people,Perhaps the easiest way to keep track is by making one additional payment a year. But many people can't pull off this huge extra payment, so splitting an additional payment into twelve additional monthly payments works too. Finally, you can commit to paying a half payment every two weeks. These options differ slightly in reducing the final payback amount and reducing payback length, but each will significantly shorten the duration of your mortgage and lower the total interest paid over the life of the loan.

Additional One-time payment

Some people can't manage any extra payments. Keep in mind that most mortgage contracts will permit you to make additional payments to your principal at any time. Whenever you come into extra money, you can use this rule to make an additional one-time payment on principal. If, for example, you were to receive a very large gift or tax refund four years into your mortgage, investing several thousand dollars into your mortgage principal will reduce the period of your loan and save enormously on mortgage interest over the duration of the loan. For most loans, even a relatively 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 1st Credential Mortgage Inc has your mortgage answers. Give us a call at (281) 778-0805.

Got a Question?

Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.

Your Information
Your Question