Mortgage Savings Tips

Paying regular additional payments on your loan principal will yield singificant savings. People pay extra in several different ways. For many people,Perhaps the easiest way to organize this process is to make 1 extra mortgage payment every year. Of course, many people can't pull off this huge additional payment, so splitting one additional payment into 12 additional monthly payments is a great option too. Another popular option is to pay a half payment every two weeks. The result is you make one additional monthly payment every year. These options differ a little in lowering the final payback amount and shortening payback length, but they will all significantly shorten the duration of your mortgage and lower the total interest you will pay over the life of the loan.

Additional One-time payment

It may not be possible for you to pay more every month or even every year. Keep in mind that almost all mortgages will allow you to make additional payments to your principal at any time. Any time you get some extra cash, you can use this rule to pay a one-time additional payment toward principal.

If, for example, you were to receive a very large gift or tax refund four years into your mortgage, investing a few thousand dollars into your mortgage principal can reduce the repayment duration of your loan and save enormously on interest over the duration of the mortgage loan. For most loans, even a relatively modest amount, paid early in the loan period, could offer big savings in interest and duration of the loan.

1st Credential Mortgage Inc can walk you through the pitfalls of getting a mortgage. Give us a call at (281) 778-0805.

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