Save on Your Mortgage

Making consistent extra payments on the loan principal will provide huge savings. People employ various techniques to accomplish this goal. For many people,Perhaps the simplest way to keep track is by making one additional payment per year. If you can't pay an additional whole payment all at once, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Another very popular option is to pay a half payment every two weeks. The result is you will make one extra monthly payment in a year. These options differ slightly in lowering the final payback amount and shortening payback length, but each will significantly shorten the length of your mortgage and lower your total interest paid.

Lump Sum Extra Payment

It may not be possible for you to pay down your principal every month or even every year. Remember that most mortgages will allow you to make additional payments to your principal at any point during repayment. You can take advantage of this rule to pay down your principal any time you come into extra money.

If, for example, you receive an unexpected windfall four years into your mortgage, you could apply a portion of this windfall toward your mortgage loan principal, which would result in huge savings and a shortened loan period. Unless the loan is very large, even a few thousand dollars applied early in the loan period can produce huge savings over the duration of the loan.

Executive Lending Group, LLC can walk you the mortgage process. Give us a call at 8165258000.