Mortgage Saving

Making regular additional payments toward your loan principal will provide huge returns. Borrowers can accomplish this using a few different techniques. For many people,Perhaps the simplest way to keep track is to make one extra payment a year. If you can't afford to pay an additional whole payment all at once, you can divide that payment by 12 and write a check for that additional amount monthly. Finally, you can commit to paying a half payment every two weeks. Each option produces slightly different results, but each will significantly shorten the duration of your mortgage and lower the total interest paid over the duration of the loan.

Additional One-time payment

It may not be possible for you to pay extra every month or even every year. Remember that most mortgage contracts will permit you to make additional payments to your principal at any time. Whenever you come into extra cash, you can use this rule to pay an additional one-time payment toward mortgage principal. Here's an example: several years after buying your home, you receive a larger than expected tax refund,a very large inheritance, or a cash gift; , you could apply this windfall toward your mortgage loan principal, resulting in significant savings and a shortened loan period. For most loans, even a relatively small amount, paid early in the loan period, could offer big savings in interest and length of the loan.

Financial Edge Mortgage Corp. can walk you Financial Edge Mortgage Corp. can answer questions about these interest savings and many others. Call us: 425-508-9988.