Extra Payments Provide Huge Mortgage Savings

Here's a simple trick to reduce the repayment period of your mortgage and save thousands over the course of your loan: Make additional payments that apply to the loan principal. Borrowers make this happen in a few different ways. For many people,Perhaps the simplest way to keep track is by making 1 additional mortgage payment every year. If you can't pay an extra whole payment all at once, you can divide that payment by 12 and pay that additional amount monthly. Another option is to pay half of your payment every other week. The effect here is that you make one extra monthly payment in a year. Each option produces slightly different results, but they will all significantly shorten the length of your mortgage and lower the total interest paid over the life of the loan.

Lump Sum Extra Payment

Some folks just can't make extra payments. Remember that almost all mortgage contracts will permit you to make additional payments to your principal at any time. Any time you come into extra money, you can use this provision to pay a one-time additional payment toward your principal. If, for example, you receive a very large gift or tax refund three years into your mortgage, you could apply a portion of this windfall toward your loan principal, which would result in enormous savings and a shorter payback period. For most loans, even a modest amount, paid early in the mortgage, could offer huge savings in interest and in the length of the loan.

Triumph Mortgage Inc can walk you through the pitfalls of getting a mortgage. Give us a call: 8327302000.

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