Simple Ways to Save Big on Your Mortgage
Paying regular extra payments toward your principal yields enormous savings. Borrowers can pay extra on principal by employing various techniques. For many people,Perhaps the easiest way to keep track is by making one extra mortgage payment a year. However, some folks can't pull off such an enormous extra expense, so splitting an extra payment into 12 extra monthly payments works as well. Another popular option is to pay a half payment every other week. The result is you make one additional monthly payment in a year. These options differ a little in lowering the total interest paid and shortening payback length, 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.
Lump-sum Additional Payment
It may not be possible for you to pay more every month or even every year. Keep in mind that almost all mortgage contracts will allow you to make additional payments to your principal at any point during repayment. Any time you get some extra money, consider using this rule to pay an additional one-time payment toward your principal. For example: a few years after buying your home, you get a huge tax refund,a very large legacy, or a cash gift; , investing a few thousand dollars into your home's principal can shorten the duration of your loan and save a huge amount on interest over the life of the 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 MortgageMax can answer questions about these interest savings and many others. Call us at (303) 443-5566.
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