Additional Payments Provide Huge Mortgage Savings

Here's a simple trick to reduce the repayment period of your mortgage and save you thousands of dollars over the course of your loan: Make extra payments which apply to your principal. People make this happen in a few different ways. For many people,Perhaps the simplest way to keep track is to make one additional payment a year. If you can't pay an additional whole payment in one month, you can divide your payment by 12 and pay that additional amount monthly. Finally, you can pay a half payment every other week. Each option yields slightly different results, but each will significantly shorten the duration of your mortgage and lower your total interest paid.

One-time Additional Payment

Some folks just can't make extra payments. But remember that most mortgages will allow you to make additional principal payments at any time. Whenever you get some unexpected money, consider using this provision to make a one-time additional payment toward principal. For example: five years after buying your home, you get a larger than expected tax refund,a very large legacy, or a non-taxable cash gift; , investing a few thousand dollars into your mortgage principal will significantly shorten the repayment duration of your loan and save enormously on interest over the life of the loan. Unless the mortgage loan is very large, even small amounts applied early in the loan period can yield huge benefits over the duration of the loan.

1st Credential Mortgage Inc can walk you the mortgage process. Call us: (281) 778-0805.

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