Save Big on your Mortgage Loan

Paying regular additional payments toward the loan principal provides enormous savings. Borrowers can accomplish this in various ways. Paying a single additional full payment once a year is perhaps the easiest to arrange. If you can't afford to pay an additional whole payment in one month, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Another popular option is to pay half of your payment every two weeks. The result is you make one extra monthly payment every year. Each of these options yields slightly different results, but they will all significantly reduce the duration of your mortgage and lower the total interest you will pay over the duration of the loan.

Lump Sum Extra 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 allow you to make additional payments at any time. Any time you come into unexpected money, consider using this provision to make an additional one-time payment toward your mortgage principal. For example: a few years after buying your home, you receive a huge tax refund,a very large legacy, or a non-taxable cash gift; , you could pay this money toward your mortgage loan principal, resulting in huge savings and a shortened loan period. Unless the loan is quite large, even modest amounts applied early in the loan period can produce huge savings over the life of the loan.

Professional Choice Mortgage can walk you Professional Choice Mortgage has your mortgage answers. Call us at 8148613310.