Big Interest Savings: Available to Anyone

Making consistent additional payments toward your principal balance will yield enormous returns. People employ various techniques to accomplish this goal. For many people,Perhaps the simplest way to organize this process is to make 1 additional payment a year. If you can't afford to pay an additional whole payment in one month, you can divide that payment by 12 and write a check for that additional amount monthly. Finally, you can pay 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 length of your mortgage and lower the total interest you will pay over the duration of the loan.

Lump Sum Extra Payment

Some borrowers can't manage any extra payments. But remember that most mortgage contracts allow additional principal payments at any time. You can take advantage of this rule to pay down your mortgage principal any time you get some extra money.

If, for example, you were to receive an unexpected windfall just a few years into your mortgage, investing several thousand dollars into your mortgage principal will shorten the duration of your loan and save a huge amount on mortgage interest over the life of the mortgage loan. For most loans, even a relatively small amount, paid early enough in the loan period, could offer huge savings in interest and duration 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 at 425-508-9988.