Save on your Mortgage

Making consistent extra payments toward the principal balance provides singificant savings. People use different methods to accomplish this goal. Paying a single additional full payment one time every year is perhaps the easiest to track. However, some folks will not be able to afford this huge additional expense, so dividing an additional payment into twelve additional monthly payments works too. Another option is to pay half of your payment every two weeks. The effect here is that you will make one extra monthly payment each year. These options differ a little in lowering the final payback amount and reducing payback length, but each will significantly reduce the duration of your mortgage and lower the total interest you will pay over the life of the loan.

Additional One-time payment

It may not be possible for you to pay extra every month or even every year. Remember that virtually all mortgage contracts will allow you to pay extra on your principal at any point during repayment. You can take advantage of this rule to pay down your principal when you come into extra money.

If, for example, you were to receive a very large gift or tax refund five years into your mortgage, investing several thousand dollars into your mortgage principal will shorten the period of your loan and save enormously on mortgage interest paid over the duration of the mortgage loan. For most loans, even this modest amount, paid early in the mortgage, could offer big savings in interest and in the duration of the loan.

America's Money Source can walk you America's Money Source can answer questions about these interest savings and many others. Give us a call at 4078987559.