Huge Savings on Interest: Available to Anyone

Here's a simple trick to reduce the repayment period of your mortgage and save thousands of dollars over the course of your loan: Make extra payments that apply toward the loan principal. You can do this using a few different techniques. For many people,Perhaps the simplest way to keep track is by making 1 extra mortgage payment a year. If you can't afford to pay an additional whole payment in one month, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can commit to paying a half payment every two weeks. Each of these options produces slightly different results, but each will significantly reduce the duration of your mortgage and lower your total interest paid.

Lump-sum Additional Payment

It may not be possible for you to pay extra every month or even every year. Remember that virtually all mortgages will allow you to pay extra on your principal at any point during repayment. You can take advantage of this rule to pay extra on your principal when you come into extra money.

If, for example, you receive a surprise windfall five years into your mortgage, paying a few thousand dollars into your mortgage principal will reduce the repayment period of your loan and save a huge amount on mortgage interest over the duration of the loan. For most loans, even a small amount, paid early in the mortgage, could offer big savings in interest and length of the loan.

Amortgage.com can walk you Amortgage.com can answer questions about these interest savings and many others. Call us: 7814920796.