Big Savings on Interest: Available to Anyone with a Mortgage

Here's a simple trick to significantly reduce the length of your mortgage and save you thousands in interest: Make extra payments that go to the loan principal. People employ various techniques to accomplish this goal. Making 1 additional full payment once per year may be the simplest to track. If you can't afford to pay an additional whole payment in one month, you can divide your payment by 12 and write a check for that additional amount monthly. Finally, you can pay a half payment every other week. Each of these options yields different results, but they will all significantly shorten the duration of your mortgage and lower the total interest you will pay over the duration of the loan.

One-time Additional Payment

Some folks can't manage extra payments. But remember that most mortgages will allow you to make additional principal payments at any time. Whenever you come into unexpected money, you can use this rule to pay an additional one-time payment on your principal. If, for example, you receive a very large gift or tax refund five years into your mortgage, paying a few thousand dollars into your home's principal can significantly reduce the period of your loan and save a huge amount on mortgage interest over the life of the mortgage loan. Unless the loan is very large, even small amounts applied early in the loan period can produce huge savings over the life of the loan.

Home Pointe Mortgage Company can walk you the mortgage process. Call us: 7702202800.