Save Big on your Mortgage
There's a simple trick to reduce the repayment period of your mortgage and save you thousands of dollars over the course of your loan: Make extra payments that apply toward your principal. Borrowers pay against principal in many different ways. For many people,Perhaps the easiest way to organize this process is to make one additional mortgage payment per year. If you can't afford to pay an extra whole payment all at once, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can pay half of your mortgage payment every two weeks. Each of these options produces slightly different results, but they will all significantly shorten the duration of your mortgage and lower the total interest you will pay over the duration of the loan.
Additional One-time payment
It may not be possible for you to pay more every month or even every year. Remember that virtually all mortgages will allow you to pay extra on your principal at any point during repayment. You can take advantage of this provision to pay down your principal when you come into extra money.
If, for example, you receive an unexpected windfall just a few years into your mortgage, you could pay a portion of this windfall toward your loan principal, which would result in enormous savings and a shorter loan period. Unless the mortgage loan is very large, even a few thousand dollars applied early can produce huge savings over the duration of the loan.
MortgageMax can walk you the mortgage process. Call us: (303) 443-5566.
Do you have a question regarding a mortgage program?