Big Savings on Interest: Available to Anyone

Paying consistent additional payments on the principal will yield big savings. Borrowers pay extra on principal in various ways. Paying 1 extra full payment one time per year is perhaps the easiest to keep track of. But some people will not be able to swing such a large extra expense, so splitting one extra payment into twelve extra monthly payments works too. Finally, you can commit to paying a half payment every two weeks. Each of these options produces slightly different results, but they will all significantly shorten the duration of your mortgage and lower your total interest paid.

Additional One-time payment

It may not be possible for you to pay more every month or even every year. Remember that virtually all mortgages will permit you to pay extra on your principal at any time. Any time you get some extra cash, you can use this rule to pay a one-time additional payment on mortgage principal. If, for example, you were to receive a very large gift or tax refund four years into your mortgage, you could pay a portion of this money toward your mortgage loan principal, resulting in enormous savings and a shorter loan period. Unless the loan is very large, even modest amounts applied early in the loan period can yield huge savings over the duration of the loan.

Triumph Mortgage Inc can walk you the mortgage process. Call us: 8327302000.

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