Simple Ways to Save Big on Your Mortgage

Here's a simple trick to significantly reduce the length of your mortgage and save thousands in interest: Make additional payments which are applied toward the loan principal. People employ various techniques to accomplish this goal. Making one additional full payment once per year may be the simplest to track. If you can't pay an additional whole payment all at once, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every other week. Each option yields different results, but each will significantly reduce the length of your mortgage and lower the total interest paid over the life of the loan.

Lump-sum Additional Payment

It may not be possible for you to pay more every month or even every year. Keep in mind that virtually all mortgages will permit you to make additional payments to your principal at any point during repayment. You can benefit from this provision to pay down your mortgage principal any time you come into extra money.

For example: several years after buying your home, you get a larger than expected tax refund,a very large inheritance, or a cash gift; , investing a few thousand dollars into your mortgage principal can significantly shorten the repayment duration of your loan and save enormously on mortgage interest over the life of the mortgage loan. For most loans, even this relatively small amount, paid early enough in the mortgage, could offer big savings in interest and duration of the loan.

Financial Edge Mortgage Corp. can walk you through the pitfalls of getting a mortgage. Call us: 425-508-9988.