Mortgage Savings

There's a trick to significantly reduce the length of your mortgage and save you thousands over the course of your loan: Make additional payments which apply toward your principal. Borrowers accomplish this goal in several ways. For many people,Perhaps the simplest way to keep track is by making one additional mortgage payment per year. If you can't afford to pay an extra whole payment all at once, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can pay half of your mortgage payment every other week. These options differ a little in reducing the total interest paid and reducing payback length, but each will significantly reduce the duration of your mortgage and lower the total interest you will pay over the life of the loan.

Additional One-time payment

Some borrowers just can't make extra payments. Keep in mind that most mortgages will permit you to make additional payments to your principal at any point during repayment. Any time you get some unexpected money, you can use this rule to pay a one-time additional payment on your principal. If, for example, you were to receive a surprise windfall three years into your mortgage, you could apply this money toward your mortgage loan principal, which would result in enormous savings and a shortened payback period. For most loans, even this relatively modest amount, paid early in the mortgage, could offer big savings in interest and duration of the loan.

Budica Financial Corporation can walk you the mortgage process. Call us at 9518404188.