Simple Ways to Save on Your Mortgage
Making regular additional payments on the principal provides huge returns. Borrowers can accomplish this in various ways. For many people,Perhaps the easiest way to keep track is to make one extra mortgage payment a year. If you can't pay an additional whole payment in one month, you can divide that payment by 12 and write a check for that additional amount monthly. Another option is to pay half of your payment every other week. The result is you make one extra monthly payment each year. These options differ slightly in lowering the final payback amount and reducing payback length, but they will all significantly reduce the length of your mortgage and lower your total interest paid.
Additional One-time payment
Some folks just can't make extra payments. But remember that most mortgages allow you to make additional payments at any time. Any time you come into extra money, you can use this provision to make a one-time additional payment on your principal. If, for example, you were to receive a large gift or tax refund three years into your mortgage, paying several thousand dollars into your home's principal can shorten the period of your loan and save enormously on interest paid over the life of the mortgage loan. Unless the mortgage loan is very large, even small amounts applied early in the loan period can produce huge savings over the duration of the loan.
MortgageMax can walk you the mortgage process. Call us at (303) 443-5566.
Do you have a question regarding a mortgage program?