Save on your Mortgage Loan
Here's a simple trick to significantly reduce the length of your mortgage and save thousands of dollars over the course of your loan: Make extra payments that are applied to your loan principal. Borrowers use different methods to accomplish this goal. For many people,Perhaps the easiest way to keep track is to make one extra mortgage payment a year. If you can't pay an extra whole payment in one month, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Another popular option is to pay half of your payment every two weeks. The effect here is that you will make one additional monthly payment every year. Each of these options produces different results, but each will significantly shorten the length of your mortgage and lower the total interest you will pay over the duration of the loan.
Lump Sum Extra Payment
It may not be possible for you to pay extra every month or even every year. But remember that most mortgages will allow additional payments at any time. Any time you come into unexpected money, you can use this provision to make a one-time additional payment toward your principal. If, for example, you receive a large gift or tax refund three years into your mortgage, investing a few thousand dollars into your home's principal will significantly shorten the duration of your loan and save enormously on interest over the duration of the loan. For most loans, even a modest amount, paid early in the loan period, could offer big savings in interest and in the length of the loan.
Financial Edge Mortgage Corp. can walk you At Financial Edge Mortgage Corp., we answer questions about interest-saving strategies almost every day. Call us at 425-508-9988.
Got a Question?
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.