Save Big on Your Mortgage

Here's a simple trick to reduce the repayment period of your mortgage and save thousands in interest: Make extra payments which apply to the loan principal. People make this happen in a few different ways. For many people,Perhaps the simplest way to organize this process is by making one extra mortgage payment a year. Of course, many people will not be able to afford this huge extra expense, so splitting a single additional payment into 12 extra monthly payments works as well. Another very popular option is to pay a half payment every other week. The result is you will make one extra monthly payment every year. These options differ slightly in reducing the final payback amount and shortening payback length, but they will all significantly shorten the length of your mortgage and lower your total interest paid.

Additional One-time payment

It may not be possible for you to pay extra every month or even every year. Remember that almost all mortgages will allow you to make additional payments to your principal at any time. You can benefit from this rule to pay down your mortgage principal any time you get some extra money.

If, for example, you receive a very large gift or tax refund five years into your mortgage, investing a few thousand dollars into your mortgage principal can reduce the repayment duration of your loan and save enormously on interest paid over the life of the mortgage loan. Unless the loan is quite large, even a few thousand dollars applied early can produce huge savings over the duration of the loan.

America's Money Source can walk you At America's Money Source, we answer questions about interest-saving strategies almost every day. Give us a call at 4078987559.


America's Money Source

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Orlando, FL 32806