Mortgage Saving Tips

There's a trick to significantly reduce the length of your mortgage and save thousands in interest: Make extra payments that are applied toward your principal. People employ various techniques to meet this goal. Paying a single extra full payment once every year may be the easiest to track. If you can't pay an additional whole payment all at once, you can divide your payment by 12 and pay that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every other week. These options differ a little in reducing the total interest paid and shortening payback length, but each will significantly shorten the length of your mortgage and lower your total interest paid.

Additional One-time payment

It may not be possible for you to pay down your principal every month or even every year. Remember that almost all mortgages will permit you to make additional payments to your principal at any point during repayment. Any time you get some extra money, you can use this provision to pay an additional one-time payment on your principal. If, for example, you were to receive a surprise windfall four years into your mortgage, paying a few thousand dollars into your mortgage principal will significantly shorten the repayment duration of your loan and save enormously on interest paid over the life of the mortgage loan. For most loans, even a relatively small amount, paid early enough in the mortgage, could offer big savings in interest and in the length of the loan.

Affinity Mortgage Brokers can walk you Affinity Mortgage Brokers has your mortgage answers. Call us: 719-331-6278.

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