Mortgage Savings

There's a simple trick to significantly reduce the length of your mortgage and save thousands in interest: Make additional payments which apply toward your loan principal. People make this happen in several ways. For many people,Perhaps the easiest way to keep track is to make 1 additional mortgage payment per year. If you can't afford to pay an extra whole payment all at once, you can divide that payment by 12 and write a check for that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every other week. These options differ a little in reducing the total interest paid and reducing payback length, but they will all significantly shorten the duration of your mortgage and lower the total interest paid over the life of the loan.

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 payments at any time. You can take advantage of this provision to pay down your mortgage principal when you come into extra money. If, for example, you were to receive a very large gift or tax refund four years into your mortgage, investing several thousand dollars into your mortgage principal will shorten the repayment period of your loan and save a huge amount on mortgage interest over the duration of the mortgage loan. For most loans, even a modest amount, paid early in the loan period, could offer huge savings in interest and length of the loan.

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

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