Simple Ways to Save on Your Mortgage
Here's a simple trick to reduce the repayment period of your mortgage and save you thousands in interest: Make additional payments which are applied to your loan principal. People accomplish this goal in several ways. For many people,Perhaps the easiest way to keep track is to make one additional mortgage payment a year. If you can't afford to pay an extra whole payment all at once, you can divide your payment by 12 and write a check for that additional amount monthly. Another popular option is to pay a half payment every other week. The effect here is that you make one additional monthly payment in a year. Each of these options yields slightly different results, 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 any extra payments. But remember that most mortgage contracts allow additional principal payments at any time. You can benefit from this provision to pay down your mortgage principal any time you come into extra money. If, for example, you were to receive a very large gift or tax refund just a few years into your mortgage, you could apply a portion of this money toward your mortgage loan principal, which would result in enormous savings and a shorter payback period. For most loans, even this small amount, paid early enough in the mortgage, could offer huge savings in interest and in the length of the loan.
MortgageMax can walk you the mortgage process. Call us at (303) 443-5566.
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