Save on your Mortgage

Here's a simple trick to significantly reduce the length of your mortgage and save you thousands over the course of your loan: Make additional payments which apply to your principal. Borrowers make this happen in a few different ways. For many people,Perhaps the simplest way to organize this process is by making one additional payment per year. If you can't 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 half of your mortgage payment every other week. Each of these options yields different results, but each will significantly shorten the length of your mortgage and lower your total interest paid.

One-time Additional Payment

Some borrowers can't manage extra payments. But remember that most mortgages allow additional payments at any time. You can benefit from this provision to pay extra on your mortgage principal when you get some extra money.

If, for example, you receive a surprise windfall five years into your mortgage, you could pay a portion of this windfall toward your loan principal, resulting in huge savings and a shorter payback period. For most loans, even this relatively modest amount, paid early in the mortgage, could offer huge savings in interest and in the duration of the loan.

Home Pointe Mortgage Company can walk you through the pitfalls of getting a mortgage. Give us a call: 7702202800.