Mortgage Saving Tips

Making regular extra payments toward your loan principal will yield big savings. People accomplish this goal in several ways. For many people,Perhaps the easiest way to keep track is by making 1 additional mortgage payment every year. Of course, some people won't be able to pull off such an enormous additional payment, so dividing an extra payment into twelve extra monthly payments works as well. Finally, you can pay a half payment every other week. These options differ a little in reducing the final payback amount and shortening payback length, but each will significantly shorten the duration of your mortgage and lower your total interest paid.

Additional One-time payment

Some borrowers can't manage any extra payments. But it's important to note that most mortgage contracts will allow you to make additional payments at any time. Whenever you get some unexpected money, consider using this rule to pay a one-time additional payment on your principal. If, for example, you receive a very large gift or tax refund four years into your mortgage, you could apply a portion of this windfall toward your loan principal, which would result in significant savings and a shorter payback period. For most loans, even this relatively small amount, paid early enough in the mortgage, could offer big savings in interest and in the duration 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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