Big Interest Savings: Available to Anyone with a Mortgage

Here's a simple trick to significantly reduce the length of your mortgage and save thousands over the course of your loan: Make extra payments which go to your loan principal. You can accomplish this in various ways. For many people,Perhaps the simplest way to organize this process is to make one additional payment every year. However, some folks can't swing this huge extra payment, so splitting an extra payment into 12 additional monthly payments works as well. Another option is to pay a half payment every two weeks. The result is you will make one extra monthly payment each year. Each of these options yields different results, but they will all significantly reduce the length of your mortgage and lower the total interest you will pay over the life of the loan.

Lump Sum Extra Payment

Some folks can't manage extra payments. But it's important to note that most mortgage contracts allow additional payments at any time. You can take advantage of this provision to pay down your mortgage principal when you come into extra money.

If, for example, you receive a large gift or tax refund three years into your mortgage, you could pay this money toward your mortgage loan principal, which would result in huge savings and a shortened loan period. Unless the loan is quite large, even modest amounts applied early can yield huge benefits over the duration 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 at 8148613310.