Simple Ways to Save Big on Your Mortgage

Making regular extra payments on your principal balance can yield singificant returns. Borrowers pay extra in a few different ways. For many people,Perhaps the simplest way to organize this process is by making 1 extra mortgage payment per year. If you can't pay an additional whole payment in one month, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Another option is to pay half of your payment every two weeks. The effect here is that you make one additional monthly payment every year. Each of these options yields different results, but each will 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 extra every month or even every year. But you should remember that most mortgage contracts allow additional principal payments at any time. Whenever you get some unexpected money, you can use this rule to make a one-time additional payment toward your mortgage principal. If, for example, you were to receive an unexpected windfall four years into your mortgage, investing several thousand dollars into your mortgage principal can significantly shorten the repayment duration of your loan and save a huge amount on interest paid over the life of the mortgage loan. For most loans, even a relatively modest amount, paid early in the loan period, could offer huge savings in interest and in the length of the loan.

1st Credential Mortgage Inc can walk you the mortgage process. Call us: (281) 778-0805.

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