Mortgage Saving

Paying regular extra payments on the principal will yield big returns. People use different methods to meet this goal. Paying a single extra full payment one time every year is likely the simplest to arrange. If you can't pay an additional whole payment all at once, you can divide that payment by 12 and pay that additional amount monthly. Finally, you can pay half of your mortgage payment every two weeks. These options differ slightly in reducing the final payback amount and reducing payback length, but they will all significantly reduce the duration of your mortgage and lower the total interest you will pay over the life of the loan.

Lump Sum Extra Payment

Some people just can't make extra payments. Remember that most mortgages will permit you to pay extra on your principal at any time. You can take advantage of this provision to pay down your mortgage principal when you come into extra money. If, for example, you receive a large gift or tax refund just a few years into your mortgage, investing several thousand dollars into your mortgage principal will significantly shorten the duration of your loan and save enormously on interest over the duration of the loan. Unless the loan is quite large, even a few thousand dollars applied early in the loan period can yield huge savings over the duration of the loan.

Budica Financial Corporation can walk you through the pitfalls of getting a mortgage. Call us: 9518404188.

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