Save Big on your Mortgage Loan

Here's a simple trick to significantly reduce the length of your mortgage and save thousands over the course of your loan: Make extra payments that apply to your loan principal. You can do this in various ways. For many people,Perhaps the simplest way to organize this process is by making 1 extra mortgage payment a year. If you can't afford to pay an extra whole payment in one month, you can divide that payment by 12 and pay that additional amount monthly. Another popular option is to pay half of your payment every two weeks. The effect here is that you make one extra monthly payment each year. Each of these options produces different results, but each will significantly reduce the duration of your mortgage and lower your total interest paid.

Additional One-time payment

Some folks just can't make any extra payments. Keep in mind that almost all mortgage contracts will allow you to make additional payments to your principal at any time. Whenever you get some extra money, consider using this provision to pay a one-time additional payment on mortgage principal.

If, for example, you receive a surprise windfall three years into your mortgage, paying several thousand dollars into your mortgage principal can reduce the duration of your loan and save enormously on interest over the duration of the mortgage loan. For most loans, even this relatively modest amount, paid early in the loan period, could offer big savings in interest and in the duration of the loan.

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

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