Save Big on your Mortgage Loan

There's a trick to reduce the repayment period of your mortgage and save you thousands of dollars in interest: Make additional payments that are applied to the principal. Borrowers employ various techniques to accomplish this goal. For many people,Perhaps the simplest way to organize this process is by making 1 additional payment a year. If you can't pay an extra whole payment in one month, you can divide that payment by 12 and pay that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every two weeks. Each of these options produces slightly different results, but they will all significantly shorten 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. Keep in mind that virtually all 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 any time you get some extra money. For example: a few years after buying your home, you receive a larger than expected tax refund,a very large legacy, or a cash gift; , paying a few thousand dollars into your mortgage principal will significantly reduce the duration of your loan and save a huge amount on mortgage interest over the duration of the loan. For most loans, even a relatively modest amount, paid early in the mortgage, could offer big savings in interest and duration of the loan.

Executive Lending Group, LLC can walk you Executive Lending Group, LLC can answer questions about these interest savings and many others. Call us: 8165258000.

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