Simple Ways to Save on Your Mortgage

Making regular extra payments toward the loan principal provides enormous returns. People accomplish this goal in several ways. Making a single additional full payment once every year is probably the easiest to keep track of. If you can't afford to pay an additional whole payment all at once, you can divide that payment by 12 and write a check for that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every other week. These options differ slightly in reducing the total interest paid and shortening payback length, but they will all significantly shorten the length of your mortgage and lower the total interest you will pay over the duration of the loan.

Lump-sum Additional Payment

Some people just can't make any extra payments. But remember that most mortgages allow you to make additional principal payments at any time. Whenever you come into unexpected money, consider using this provision to make an additional one-time payment on your mortgage principal. For example: a few years after buying your home, you get a very large tax refund,a very large inheritance, or a cash gift; , you could pay a portion of this money toward your mortgage loan principal, which would result in huge savings and a shortened loan period. Unless the mortgage loan is very large, even modest amounts applied early in the loan period can produce huge benefits over 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. Call us: 4078987559.