Save Big on your Mortgage Loan

Making consistent extra payments on your loan principal will provide huge returns. You pay against principal in many different ways. Paying one extra payment one time per year is perhaps the simplest to arrange. However, many people will not be able to swing such an enormous extra payment, so dividing a single extra payment into 12 additional monthly payments is a fine option too. Finally, you can pay half of your mortgage payment every two weeks. Each of these options yields different results, but they will all significantly shorten the length of your mortgage and lower the total interest paid over the duration of the loan.

Lump Sum Extra Payment

Some borrowers just can't make extra payments. But you should remember that most mortgages will allow you to make additional payments at any time. Whenever you get some extra cash, consider using this provision to pay a one-time additional payment toward your principal. If, for example, you were to receive a very large gift or tax refund five years into your mortgage, paying several thousand dollars into your home's principal will reduce the duration of your loan and save a huge amount on mortgage interest over the duration of the mortgage loan. Unless the mortgage loan is very large, even small amounts applied early can yield huge benefits over the duration of the loan.

1st Credential Mortgage Inc can walk you the mortgage process. Call us: (281) 778-0805.