Save Big on your Mortgage Loan

Here's a simple trick to significantly reduce the length of your mortgage and save thousands of dollars in interest: Make additional payments that go to the principal. Borrowers can pay extra on principal by employing various techniques. Making 1 additional payment once a year is probably the simplest to arrange. If you can't afford to pay an additional whole payment all at once, you can divide your payment by 12 and write a check for that additional amount monthly. Finally, you can pay a half payment every two weeks. These options differ a little in reducing the final payback amount and shortening payback length, but each will significantly reduce the length of your mortgage and lower the total interest paid over the duration of the loan.

Lump Sum Extra Payment

Some people just can't make extra payments. Keep in mind 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 when you come into extra money.

For example: a few years after moving into your home, you receive a larger than expected tax refund,a large inheritance, or a cash gift; , investing a few thousand dollars into your home's principal will significantly reduce the repayment duration of your loan and save enormously on interest over the duration of the loan. For most loans, even a relatively modest amount, paid early enough in the loan period, could offer big savings in interest and 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.