Save Big on your Mortgage Loan

There's a simple trick to significantly reduce the length of your mortgage and save thousands over the course of your loan: Make additional payments that are applied toward the principal. People use different methods to meet this goal. For many people,Perhaps the easiest way to organize this process is to make one additional mortgage payment a year. Of course, many people won't be able to swing such an enormous additional expense, so splitting one additional payment into 12 additional monthly payments is a great option too. Another very popular option is to pay a half payment every other week. The effect here is that you will make one additional monthly payment in a year. These options differ slightly in reducing the final payback amount and reducing payback length, but each will significantly reduce the duration of your mortgage and lower the total interest you will pay over the life of the loan.

Lump-sum Additional Payment

Some people just can't make extra payments. Remember that virtually all mortgage contracts will permit you to make additional payments to your principal at any point during repayment. Whenever you get some extra money, you can use this rule to make an additional one-time payment toward principal. For example: a few years after moving into your home, you receive a larger than expected tax refund,a large legacy, or a cash gift; , you could apply this money toward your loan principal, which would result in significant savings and a shorter payback period. For most loans, even a relatively small amount, paid early enough in the loan period, could offer huge savings in interest and duration of the loan.

1st Credential Mortgage Inc can walk you 1st Credential Mortgage Inc can answer questions about these interest savings and many others. Give us a call at (281) 778-0805.

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