Mortgage Savings

There's a simple trick to significantly reduce the length of your mortgage and save you thousands of dollars over the course of your loan: Make extra payments which go to the principal. You pay against principal in many different ways. For many people,Perhaps the simplest way to organize this process is by making 1 additional mortgage payment per year. But some people won't be able to swing such an enormous extra expense, so splitting a single additional payment into 12 additional monthly payments is a great option too. Finally, you can commit to paying a half payment every two weeks. Each of these options produces slightly different results, but they will all significantly reduce the length of your mortgage and lower your total interest paid.

Additional One-time payment

It may not be possible for you to pay down your principal every month or even every year. But you should remember that most mortgage contracts will allow you to make additional principal payments at any time. You can take advantage of this rule to pay down your mortgage principal any time you get some extra money. Here's an example: a few years after buying your home, you get a very large tax refund,a large legacy, or a non-taxable cash gift; , you could pay this money toward your mortgage loan principal, which would result in huge savings and a shortened payback period. For most loans, even a small amount, paid early enough in the mortgage, 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. Call us at (281) 778-0805.

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