Simple Ways to Save on Your Mortgage
There's a trick to reduce the repayment period of your mortgage and save thousands of dollars over the course of your loan: Make extra payments which are applied to your principal. Borrowers can do this in various ways. For many people,Perhaps the simplest way to organize this process is to make 1 extra payment a year. If you can't afford to pay an extra 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 other week. Each option produces slightly different results, but each will significantly reduce the duration of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
It may not be possible for you to pay more every month or even every year. Keep in mind that most mortgages will permit you to make additional payments to your principal at any point during repayment. Whenever you get some extra cash, consider using this provision to make an additional one-time payment on your mortgage principal. If, for example, you were to receive a 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 significant savings and a shorter payback period. For most loans, even a relatively modest amount, paid early enough in the mortgage, could offer huge savings in interest and in the length of the loan.
Trustin Mortgage, LLC can walk you Trustin Mortgage, LLC can answer questions about these interest savings and many others. Call us: (302) 765-8089.
Got a Question?
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.