Save Big on Your Mortgage

Paying consistent extra payments toward your loan principal provides singificant savings. You can do this using a few different techniques. Paying a single additional full payment once a year is probably the simplest to arrange. If you can't afford to pay an additional whole payment in one month, you can divide that payment by 12 and pay that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every two weeks. These options differ slightly in reducing the final payback amount and reducing payback length, but each will significantly reduce the length of your mortgage and lower your total interest paid.

Lump Sum Extra Payment

It may not be possible for you to pay more every month or even every year. But you should remember that most mortgages allow additional principal payments at any time. Any time you come into extra cash, consider using this rule to pay an additional one-time payment toward your principal. Here's an example: several years after buying your home, you receive a very large tax refund,a large legacy, or a non-taxable cash gift; , you could pay this windfall toward your mortgage loan principal, resulting in significant savings and a shortened loan period. Unless the mortgage loan is quite large, even a few thousand dollars applied early can produce huge benefits over the life of the loan.

1st Credential Mortgage Inc can walk you through the pitfalls of getting a mortgage. Call us: (281) 778-0805.

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