Big Savings on Interest: Available to Anyone with a Mortgage

Paying consistent additional payments toward the principal can yield big returns. Borrowers employ various techniques to accomplish this goal. Paying 1 extra full payment one time a year is likely the easiest to keep track of. But some people won't be able to swing such an enormous additional expense, so dividing an extra payment into twelve additional monthly payments is a great option too. Another option is to pay half of your payment every two weeks. The result is you make one additional monthly payment every year. Each option yields different results, but each will significantly shorten the duration of your mortgage and lower the total interest paid over the duration of the loan.

Lump-sum Additional Payment

It may not be possible for you to pay more every month or even every year. But you should remember that most mortgage contracts will allow additional payments at any time. Any time you get some extra money, consider using this provision to pay an additional one-time payment on your mortgage principal. Here's an example: a few years after moving into your home, you get a huge tax refund,a very large legacy, or a non-taxable cash gift; , investing a few thousand dollars into your mortgage principal will significantly shorten the duration of your loan and save a huge amount on interest paid over the life of the loan. For most loans, even a relatively modest amount, paid early in the mortgage, could offer big savings in interest and length of the loan.

Professional Choice Mortgage can walk you Professional Choice Mortgage can answer questions about these interest savings and many others. Give us a call: 814-861-3310.