Big Interest Savings: Available to Anyone with a Mortgage

Here's a simple trick to reduce the repayment period of your mortgage and save thousands of dollars in interest: Make extra payments which apply toward your loan principal. You can pay extra on principal by employing various techniques. Making one additional full payment one time a year is probably the easiest to arrange. If you can't afford to pay an additional whole payment all at once, you can divide that payment by 12 and pay that additional amount monthly. Finally, you can pay half of your mortgage payment every other week. These options differ a little in lowering the final payback amount and shortening payback length, but each will significantly shorten the length of your mortgage and lower your total interest paid.

Lump Sum Extra Payment

Some folks just can't make any extra payments. But remember that most mortgages will allow you to make additional payments at any time. You can take advantage of this rule to pay down your principal when you come into extra money. If, for example, you were to receive a surprise windfall five years into your mortgage, you could apply this windfall toward your mortgage loan principal, resulting in enormous savings and a shortened loan period. For most loans, even a relatively small amount, paid early enough in the mortgage, could offer big savings in interest and length of the loan.

Professional Choice Mortgage can walk you At Professional Choice Mortgage, we answer questions about interest-saving strategies almost every day. Give us a call at 8148613310.