Save Big on your Mortgage Loan

Here's a simple trick to reduce the repayment period of your mortgage and save thousands of dollars in interest: Make extra payments that go toward your loan principal. You can do this using a few different techniques. Paying 1 additional full payment once a year is perhaps the simplest to keep track of. If you can't pay an extra whole payment all at once, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Finally, you can pay a half payment every two weeks. These options differ a little in lowering the total interest paid and shortening payback length, but they will all significantly shorten the length of your mortgage and lower the total interest paid over the duration of the loan.

Additional One-time payment

Some people just can't make extra payments. Keep in mind that almost all mortgage contracts will allow you to make additional payments to your principal at any time. Any time you get some unexpected money, consider using this rule to make an additional one-time payment on principal. If, for example, you were to receive a large gift or tax refund just a few years into your mortgage, paying several thousand dollars into your home's principal can significantly reduce the repayment period of your loan and save enormously on mortgage interest paid over the life of the loan. Unless the loan is quite large, even modest amounts applied early in the loan period can produce huge benefits over the duration of the loan.

1st Credential Mortgage Inc can walk you 1st Credential Mortgage Inc has your mortgage answers. Give us a call: (281) 778-0805.

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