Save on Your Mortgage

There's a simple trick to reduce the repayment period of your mortgage and save thousands in interest: Make extra payments that apply to the loan principal. You can accomplish this using a few different techniques. Making a single extra full payment once a year may be the easiest to arrange. Of course, many people will not be able to afford this huge additional payment, so splitting one extra payment into twelve additional monthly payments works too. Finally, you can pay a half payment every two weeks. Each of these options yields different results, but each will significantly reduce the length of your mortgage and lower your total interest paid.

Lump-sum Additional Payment

It may not be possible for you to pay down your principal every month or even every year. Keep in mind that virtually all mortgage contracts will permit you to make additional payments to your principal at any point during repayment. You can benefit from this provision to pay extra on your principal when you get some extra money. Here's an example: several years after moving into your home, you receive a larger than expected tax refund,a large legacy, or a cash gift; , you could pay a portion of this money toward your mortgage loan principal, which would result in enormous savings and a shorter loan period. For most loans, even a relatively small amount, paid early in the loan period, could offer big savings in interest and in the length of the loan.

Professional Choice Mortgage can walk you through the pitfalls of getting a mortgage. Call us: 8148613310.