Save Big on your Mortgage Loan
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 which go to the loan principal. Borrowers can do this in various ways. Paying 1 extra payment once every year is perhaps the simplest to track. If you can't afford to pay an extra whole payment in one month, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can commit to paying a half payment every other week. These options differ a little in reducing the final payback amount and shortening payback length, but they will all significantly reduce the duration of your mortgage and lower the total interest paid 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 mortgage contracts will allow you to make additional payments to your principal at any point during repayment. You can take advantage of this provision to pay down your mortgage principal any time you come into extra money. For example: five years after moving into your home, you receive a larger than expected tax refund,a large legacy, or a non-taxable cash gift; , you could apply this money toward your mortgage loan principal, resulting in enormous savings and a shortened payback period. Unless the mortgage loan is very large, even a few thousand dollars applied early in the loan period can produce huge savings over the duration of the loan.
MortgageMax can walk you At MortgageMax, we answer questions about interest-saving strategies every day. Give us a call at (303) 443-5566.
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