Simple Ways to Save on Your Mortgage

Here's a simple trick to significantly reduce the length of your mortgage and save you thousands in interest: Make extra payments that are applied to the loan principal. Borrowers employ various techniques to meet this goal. For many people,Perhaps the simplest way to organize this process is by making one additional payment every year. If you can't afford to pay an additional whole payment in one month, you can divide that payment by 12 and write a check for that additional amount monthly. Another very popular option is to pay half of your payment every two weeks. The result is you will make one extra monthly payment each year. These options differ slightly in reducing the total interest paid and reducing payback length, but they will all significantly reduce the length of your mortgage and lower the total interest paid over the duration of the loan.

Additional One-time payment

It may not be possible for you to pay extra every month or even every year. Remember that most mortgage contracts will permit you to make additional payments to your principal at any point during repayment. You can benefit from this rule to pay extra on your mortgage principal any time you come into extra money. If, for example, you were to receive a very large gift or tax refund three years into your mortgage, you could pay this windfall toward your mortgage loan principal, resulting in significant savings and a shorter payback period. For most loans, even a relatively small amount, paid early in the mortgage, could offer big savings in interest and in the duration of the loan.

Professional Choice Mortgage can walk you the mortgage process. Call us: 8148613310.