Mortgage Saving Tips

There's a trick to reduce the repayment period of your mortgage and save you thousands of dollars over the course of your loan: Make extra payments which go to your principal. Borrowers accomplish this goal in several ways. For many people,Perhaps the simplest way to keep track is by making 1 extra payment a year. If you can't pay an extra whole payment in one month, you can divide your payment by 12 and write a check for that additional amount monthly. Another very popular option is to pay a half payment every two weeks. The effect here is that you make one extra monthly payment each year. These options differ slightly in lowering the final payback amount and reducing payback length, but they will all significantly reduce the length of your mortgage and lower the total interest you will pay over the duration of the loan.

Additional One-time payment

Some folks just can't make any extra payments. Remember that most mortgage contracts will permit you to pay extra on your principal at any point during repayment. You can benefit from this rule to pay extra on your mortgage principal when you come into extra money. If, for example, you were to receive a large gift or tax refund five years into your mortgage, you could pay a portion of this money toward your mortgage loan principal, which would result in significant savings and a shortened payback period. For most loans, even this relatively modest amount, paid early enough in the loan period, could offer big savings in interest and in the length of the loan.

Not Your Average Lender can walk you At Not Your Average Lender, we answer questions about interest-saving strategies every day. Call us: 9722039033.

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