Big Savings on Interest: Available to Anyone with a Mortgage

Here's a simple trick to reduce the repayment period of your mortgage and save thousands of dollars over the course of your loan: Make extra payments that are applied to the loan principal. People pay extra in a few ways. For many people,Perhaps the simplest way to keep track is by making 1 extra mortgage payment a year. But many people will not be able to afford such an enormous extra expense, so dividing an additional payment into twelve extra monthly payments is a fine option too. Finally, you can commit to paying a half payment every two weeks. Each of these options produces different results, but each will significantly reduce the length of your mortgage and lower the total interest you will pay over the life of the loan.

Additional One-time payment

It may not be possible for you to pay extra every month or even every year. Keep in mind that almost all mortgages will permit you to pay extra on your principal at any time. Whenever you come into extra money, consider using this provision to pay a one-time additional payment toward principal. Here's an example: a few years after moving into your home, you receive a huge tax refund,a large inheritance, or a cash gift; , you could apply a portion of this money toward your mortgage loan principal, which would result in huge savings and a shorter payback period. Unless the mortgage loan is very large, even modest amounts applied early in the loan period can produce huge savings over the duration of the loan.

Feel Good About Your Mortgage! can walk you Feel Good About Your Mortgage! can answer questions about these interest savings and many others. Give us a call: 8663001550.