Mortgage Savings Tips
Paying regular additional payments on the loan principal will yield enormous returns. You can do this in various ways. Paying one extra payment one time every year is perhaps the easiest to track. But many folks can't afford such an enormous extra expense, so dividing an extra payment into 12 additional monthly payments is a fine option too. Another popular option is to pay half of your payment every two weeks. The result is you will make one additional monthly payment each year. Each option yields different results, but each will significantly shorten the duration of your mortgage and lower the total interest paid over the life of the loan.
Additional One-time payment
Some borrowers can't manage extra payments. But it's important to note that most mortgages allow you to make additional payments at any time. Whenever you come into unexpected cash, consider using this rule to pay an additional one-time payment toward your mortgage principal.
If, for example, you receive a very large gift or tax refund four years into your mortgage, paying several thousand dollars into your mortgage principal will shorten the repayment duration of your loan and save enormously on interest over the duration of the loan. Unless the mortgage loan is very large, even modest amounts applied early in the loan period can yield 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: (303) 443-5566.
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