Huge Interest Savings: Available to Anyone with a Mortgage

Here's a simple trick to significantly reduce the length of your mortgage and save you thousands of dollars over the course of your loan: Make extra payments that go toward the loan principal. People employ various techniques to accomplish this goal. Making a single extra full payment once every 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. Finally, you can pay half of your mortgage payment every two weeks. These options differ slightly in reducing the total interest paid and shortening payback length, but they will all significantly shorten the duration 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 down your principal every month or even every year. Keep in mind that almost all mortgage contracts will permit you to pay extra on your principal at any point during repayment. You can benefit from this rule to pay down your principal any time you come into extra money.

For example: several years after buying your home, you receive a larger than expected tax refund,a very large legacy, or a non-taxable cash gift; , investing a few thousand dollars into your home's principal will shorten the period of your loan and save enormously on interest over the duration of the mortgage loan. For most loans, even this modest amount, paid early enough in the mortgage, could offer huge savings in interest and in the duration of the loan.

Home Pointe Mortgage Company can walk you Home Pointe Mortgage Company can answer questions about these interest savings and many others. Call us: 7702202800.