Save Big on your Mortgage Loan

Paying regular extra payments on your loan principal will provide singificant returns. Borrowers can do this in various ways. Making a single extra payment one time a year is likely the easiest to track. Of course, some people won't be able to afford this huge extra expense, so splitting an extra payment into 12 additional monthly payments works as well. Finally, you can pay half of your mortgage payment every other week. These options differ a little in lowering the final payback amount and shortening payback length, but each will significantly shorten the duration of your mortgage and lower the total interest paid over the life of the loan.

Lump Sum Extra Payment

Some borrowers just can't make any extra payments. Remember that virtually all mortgages will allow you to make additional payments to your principal at any point during repayment. You can take advantage of this provision to pay down your principal any time you get some extra money.

For example: several years after moving into your home, you get a very large tax refund,a very large legacy, or a cash gift; , you could apply this money toward your mortgage loan principal, resulting in huge savings and a shortened loan period. Unless the loan is quite large, even a few thousand dollars applied early can produce huge savings over the duration of the loan.

Tenby J. Dahman The Dahman Team can walk you Tenby J. Dahman The Dahman Team has your mortgage answers. Call us at 3038627760.