Simple Ways to Save Big on Your Mortgage

Paying consistent additional payments toward your loan principal will yield big returns. Borrowers make this happen in a few ways. For many people,Perhaps the simplest way to keep track is to make 1 extra payment per year. However, many people will not be able to pull off such a large extra payment, so dividing an additional payment into twelve additional monthly payments works as well. Another option is to pay a half payment every other week. The result is you make one additional monthly payment each year. Each of these options yields different results, but they will all significantly shorten the duration of your mortgage and lower the total interest paid over the life of the loan.

One-time Additional Payment

Some folks just can't make extra payments. Remember that almost all mortgages will allow you to pay extra on your principal at any time. You can benefit from this provision to pay down your mortgage principal any time you get some extra money. For example: five years after buying your home, you receive a larger than expected tax refund,a large inheritance, or a cash gift; , you could pay a portion of this money toward your mortgage loan principal, resulting in enormous savings and a shortened loan period. For most loans, even a modest amount, paid early enough in the loan period, could offer big savings in interest and length of the loan.

Tenby J. Dahman The Dahman Team can walk you Tenby J. Dahman The Dahman Team can answer questions about these interest savings and many others. Call us: 3038627760.