Simple Ways to Save Big on Your Mortgage

Paying regular additional payments toward your principal will provide huge returns. You can accomplish this using a few different techniques. Paying one extra full payment once per year is probably the easiest to keep track of. If you can't pay an additional whole payment in one month, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every two weeks. These options differ a little in lowering the total interest paid and reducing payback length, but each will significantly reduce the length of your mortgage and lower your total interest paid.

Additional One-time payment

Some people can't manage any extra payments. Keep in mind that most mortgages will permit you to pay extra on your principal at any time. Whenever you get some unexpected money, you can use this rule to make a one-time additional payment toward your principal. For example: several years after buying your home, you receive a huge tax refund,a very large inheritance, or a non-taxable cash gift; , paying several thousand dollars into your mortgage principal will reduce the repayment duration of your loan and save a huge amount on interest over the duration of the mortgage loan. For most loans, even a relatively small amount, paid early in the loan period, could offer huge savings in interest and in the length of the loan.

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