Save on Your Mortgage

Paying regular additional payments toward the loan principal will provide big savings. People employ various techniques to meet this goal. Making one extra full payment one time per year is probably the easiest to track. Of course, some people will not be able to swing such a large extra payment, so dividing an additional payment into 12 additional monthly payments is a fine option too. Finally, you can commit to paying half of your mortgage payment every other week. These options differ a little in lowering the final payback amount and reducing payback length, but they will all significantly shorten the duration of your mortgage and lower your total interest paid.

One-time Additional Payment

It may not be possible for you to pay more every month or even every year. But you should remember that most mortgages allow additional principal payments at any time. You can take advantage of this rule to pay extra on your principal when you get some extra money.

For example: several years after moving into your home, you get a very large tax refund,a large legacy, or a non-taxable cash gift; , investing several thousand dollars into your mortgage principal can significantly shorten the period of your loan and save a huge amount on interest paid over the duration of the mortgage loan. Unless the mortgage loan is quite large, even modest amounts applied early can produce huge savings over the life of the loan.

Homewithloan.com can walk you the mortgage process. Call us: 972.798.2110.

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