Save on your Mortgage

Here's a simple trick to significantly reduce the length of your mortgage and save thousands of dollars over the course of your loan: Make additional payments that go toward your principal. People employ various techniques to meet this goal. Making 1 additional payment one time a year may be the simplest to track. If you can't pay an extra whole payment all at once, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Another option is to pay half of your payment every two weeks. The effect here is that you will make one extra monthly payment every year. These options differ a little in reducing the final payback amount and reducing payback length, but each will significantly reduce the length of your mortgage and lower the total interest you will pay over the life of the loan.

Additional One-time payment

Some borrowers just can't make any extra payments. Remember that most mortgage contracts will allow you to pay extra on your principal at any point during repayment. Whenever you come into extra cash, you can use this provision to make an additional one-time payment on principal. If, for example, you receive a very large gift or tax refund four years into your mortgage, paying a few thousand dollars into your home's principal will reduce the duration of your loan and save a huge amount on interest over the life of the mortgage loan. For most loans, even this relatively small amount, paid early enough in the loan period, could offer huge savings in interest and in the duration of the loan.

MidTowne Mortgage can walk you the mortgage process. Give us a call: 4787462063.