Save Big on your Mortgage Loan

Paying consistent additional payments on your loan principal yields enormous returns. Borrowers employ various techniques to accomplish this goal. Making 1 additional payment once every year may be the easiest to keep track of. If you can't pay an additional whole payment in one month, you can divide that payment by 12 and write a check for that additional amount monthly. Another option is to pay a half payment every two weeks. The result is you make one additional monthly payment each year. Each of these options yields slightly different results, but each will significantly shorten the length of your mortgage and lower the total interest paid over the duration of the loan.

Lump Sum Extra 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. Whenever you get some extra cash, consider using this rule to make an additional one-time payment on your mortgage principal. If, for example, you receive a large gift or tax refund just a few years into your mortgage, you could pay this money toward your mortgage loan principal, which would result in significant savings and a shorter loan period. For most loans, even this relatively small amount, paid early in the loan period, could offer big savings in interest and length of the loan.

Affinity Mortgage Brokers can walk you At Affinity Mortgage Brokers, we answer questions about interest-saving strategies almost every day. Call us at 719-331-6278.

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