Save on your Mortgage

There's a trick to reduce the repayment period of your mortgage and save you thousands of dollars in interest: Make extra payments that are applied to your principal. People employ various techniques to meet this goal. Paying 1 additional payment once every year is likely the easiest to track. If you can't pay an extra whole payment in one month, you can divide that payment by 12 and write a check for that additional amount monthly. Finally, you can commit to paying a half payment every other week. These options differ slightly in reducing the final payback amount and reducing payback length, but they will all significantly shorten the length of your mortgage and lower your total interest paid.

Lump-sum Additional Payment

Some folks can't manage any extra payments. Remember that virtually all mortgage contracts will allow you to pay extra on your principal at any point during repayment. You can take advantage of this rule to pay extra on your principal any time you come into extra money.

Here's an example: several years after moving into your home, you get a larger than expected tax refund,a very large inheritance, or a non-taxable cash gift; , you could pay this windfall toward your loan principal, resulting in huge savings and a shorter loan period. Unless the mortgage loan is quite large, even modest amounts applied early can yield huge benefits over the duration of the loan.

MortgageMax can walk you At MortgageMax, we answer questions about interest-saving strategies almost every day. Call us: (303) 443-5566.

Mortgage Questions?

Do you have a question regarding a mortgage program?

Contact Information
Your Question
By checking the box, you agree that MortgageMax may call/text you about your inquiry, which may involve use of automated means and prerecorded/artificial voices.. Message/data rates may apply.