Mortgage Savings Tips

Here's a simple trick to significantly reduce the length of your mortgage and save you thousands over the course of your loan: Make additional payments which are applied to your principal. People make this happen in a few ways. Paying one additional payment once every year may be the easiest to track. If you can't afford to pay an additional whole payment all at once, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Another popular option is to pay a half payment every two weeks. The result is you make one additional monthly payment each year. Each option yields different results, but each will significantly reduce the duration 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. But remember that most mortgage contracts allow you to make additional payments at any time. Whenever you come into unexpected money, consider using this rule to pay an additional one-time payment on mortgage principal. Here's an example: five years after moving into your home, you get a larger than expected tax refund,a large inheritance, or a non-taxable cash gift; , paying several thousand dollars into your mortgage principal can shorten the repayment period of your loan and save a huge amount on interest over the duration of the mortgage loan. Unless the loan is very large, even small amounts applied early can yield huge benefits over the duration of the loan.

Tenby J. Dahman The Dahman Team can walk you through the pitfalls of getting a mortgage. Give us a call: 3038627760.