Simple Ways to Save Big on Your Mortgage

Paying consistent additional payments toward the loan principal will provide huge returns. People employ various techniques to accomplish this goal. Paying one additional payment one time every year may be the easiest to keep track of. However, many folks will not be able to afford such a large extra expense, so dividing a single extra payment into 12 extra monthly payments is a great option too. Another very popular option is to pay half of your payment every other week. The effect here is that you will make one additional monthly payment every year. Each option yields slightly different results, but each will significantly shorten the duration of your mortgage and lower the total interest paid over the life of the loan.

One-time Additional Payment

Some folks just can't make extra payments. Remember that almost all mortgages will allow you to make additional payments to your principal at any point during repayment. You can take advantage of this provision to pay down your mortgage principal when you get some extra money. Here's an example: several years after moving into your home, you receive a huge tax refund,a very large legacy, or a non-taxable cash gift; , you could pay this money toward your loan principal, resulting in enormous savings and a shorter 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 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. Give us a call: 8165258000.