Big Interest Savings: Available to Anyone

There's a trick to significantly reduce the length of your mortgage and save thousands of dollars over the course of your loan: Make extra payments which apply toward your principal. Borrowers use different methods to accomplish this goal. Paying one extra full payment one time per year may be the simplest to arrange. If you can't pay an additional whole payment in one month, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Finally, you can commit to paying a half payment every two weeks. Each option yields different results, but each will significantly shorten the duration of your mortgage and lower the total interest paid over the duration of the loan.

Additional One-time payment

Some folks just can't make extra payments. But remember that most mortgage contracts allow you to make additional payments at any time. Whenever you get some unexpected cash, you can use this provision to pay an additional one-time payment on your principal. For example: several years after buying your home, you get a very large tax refund,a very large legacy, or a non-taxable cash gift; , you could apply this windfall toward your mortgage loan principal, resulting in huge savings and a shorter payback period. Unless the loan is quite large, even a few thousand dollars applied early can produce huge savings over the duration of the loan.

MortgageMax can walk you through the pitfalls of getting a mortgage. Give us a call at (303) 443-5566.

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