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 additional payments which are applied toward the principal. Borrowers can pay more on principal in various ways. For many people,Perhaps the simplest way to organize this process is by making 1 additional mortgage payment a year. If you can't afford to pay an extra whole payment in one month, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Finally, you can pay half of your mortgage payment every two weeks. These options differ slightly in reducing the final payback amount and reducing 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.

Lump Sum Extra Payment

It may not be possible for you to pay more every month or even every year. Remember that almost all mortgage contracts will permit you to pay extra on your principal at any time. Any time you come into unexpected money, you can use this provision to make an additional one-time payment on principal. Here's an example: a few years after moving into your home, you get a larger than expected tax refund,a very large inheritance, or a cash gift; , you could pay this money toward your mortgage loan principal, resulting in enormous savings and a shorter loan period. For most loans, even a modest amount, paid early in the mortgage, could offer huge savings in interest and in the duration of the loan.

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

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