Mortgage Savings

Paying regular additional payments toward your principal balance provides singificant savings. People pay extra in several ways. Making a single extra payment once per year is perhaps the easiest to arrange. But many people will not be able to swing such a large additional payment, so splitting one extra payment into twelve extra monthly payments works too. Finally, you can pay a half payment every other week. Each option produces slightly different results, but each will significantly reduce the length of your mortgage and lower your total interest paid.

Lump Sum Extra Payment

It may not be possible for you to pay extra every month or even every year. But remember that most mortgage contracts will allow you to make additional payments at any time. Whenever you get some extra money, you can use this provision to make an additional one-time payment toward principal. For example: five years after moving into your home, you get a huge tax refund,a very large legacy, or a cash gift; , investing several thousand dollars into your home's principal will shorten the period of your loan and save a huge amount on interest paid over the duration of the loan. Unless the mortgage loan is very large, even a few thousand dollars applied early in the loan period can yield huge savings over the duration of the loan.

1st Credential Mortgage Inc can walk you 1st Credential Mortgage Inc has your mortgage answers. Call us at (281) 778-0805.

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