Save on your Mortgage

Making regular additional payments on your loan principal will yield huge savings. Borrowers make this happen in a few ways. For many people,Perhaps the simplest way to organize this process is by making 1 extra mortgage payment per year. Of course, some folks can't pull off this huge extra payment, so splitting one extra payment into twelve extra monthly payments is a great option too. Another option is to pay a half payment every other week. The effect here is that you make one additional monthly payment each year. Each option yields different results, but they will all significantly reduce the length of your mortgage and lower the total interest paid over the duration of the loan.

Additional One-time payment

Some people just can't make any extra payments. But it's important to note that most mortgages will allow you to make additional principal payments at any time. Any time you get some extra cash, you can use this rule to make an additional one-time payment on your principal.

If, for example, you receive a large gift or tax refund four years into your mortgage, you could apply a portion of this windfall toward your mortgage loan principal, which would result in enormous savings and a shorter payback period. For most loans, even a relatively small amount, paid early in the loan period, could offer big savings in interest and length of the loan.

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