Additional Payments Provide Huge Savings

Here's a simple trick to reduce the repayment period of your mortgage and save you thousands of dollars over the course of your loan: Make additional payments which go to the principal. You can pay more on principal by employing various techniques. Paying one extra full payment one time a year is likely the simplest to arrange. If you can't afford to pay an additional whole payment all at once, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Another very popular option is to pay a half payment every other week. The effect here is that you make one extra monthly payment each year. Each option yields slightly different results, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.

One-time Additional Payment

Some people can't manage extra payments. Keep in mind that almost all mortgage contracts will allow you to pay extra on your principal at any time. Whenever you get some extra money, consider using this rule to make a one-time additional payment toward principal.

If, for example, you receive an unexpected windfall just a few years into your mortgage, paying a few thousand dollars into your mortgage principal will significantly reduce the duration of your loan and save a huge amount on interest paid over the life of the mortgage loan. Unless the mortgage loan is very large, even a few thousand dollars applied early in the loan period can yield huge benefits over the life of the loan.

1st Credential Mortgage Inc can walk you At 1st Credential Mortgage Inc, we answer questions about interest-saving strategies almost every day. Call us 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