Save on Your Mortgage

Paying consistent additional payments on the principal can yield big returns. Borrowers pay against principal in various ways. Paying one additional full payment one time per year is perhaps the simplest to arrange. If you can't pay an additional whole payment all at once, you can divide your payment by 12 and write a check for that additional amount monthly. Finally, you can commit to paying a half payment every two weeks. Each of these options produces slightly different results, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.

One-time Additional Payment

Some folks just can't make extra payments. Remember that almost all mortgage contracts will permit you to pay extra on your principal at any point during repayment. You can benefit from this provision to pay down your principal when you come into extra money. Here's an example: a few years after moving into your home, you receive a very large tax refund,a large legacy, or a cash gift; , paying several thousand dollars into your home's principal can reduce the repayment duration of your loan and save a huge amount on mortgage interest over the life of the mortgage loan. Unless the loan is very large, even small amounts applied early can yield huge benefits over the duration of the loan.

Budica Financial Corporation can walk you At Budica Financial Corporation, we answer questions about money-saving strategies almost every day. Give us a call at 9518404188.