Simple Ways to Save Big on Your Mortgage

There's a simple trick to significantly reduce the length of your mortgage and save you thousands over the course of your loan: Make extra payments which apply to your principal. People employ various techniques to accomplish this goal. For many people,Perhaps the easiest way to organize this process is by making 1 extra payment a year. However, many folks will not be able to afford such an enormous extra payment, so dividing an extra payment into 12 additional monthly payments works as well. Another very popular option is to pay half of your payment every two weeks. The result is you make one additional monthly payment each year. Each of these options yields slightly different results, but they will all significantly shorten the duration of your mortgage and lower your total interest paid.

One-time Additional Payment

Some folks can't manage extra payments. Remember that most mortgages will permit you to make additional payments to your principal at any point during repayment. Any time you come into unexpected cash, you can use this provision to pay a one-time additional payment toward your principal. Here's an example: five years after buying your home, you get a larger than expected tax refund,a large inheritance, or a cash gift; , you could apply this money toward your loan principal, which would result in enormous savings and a shorter loan period. For most loans, even this relatively modest amount, paid early enough in the loan period, could offer huge savings in interest and duration of the loan.

Amortgage.com can walk you through the pitfalls of getting a mortgage. Call us: 7814920796.