Mortgage Saving Tips

Here's a simple trick to significantly reduce the length of your mortgage and save you thousands of dollars over the course of your loan: Make extra payments which apply to the principal. You can do this in various ways. Paying a single extra payment once per year is probably the easiest to arrange. However, many people can't pull off such an enormous additional expense, so splitting an additional payment into 12 extra monthly payments is a fine option too. Finally, you can commit to paying half of your mortgage payment every two weeks. Each of these options yields different results, but each will significantly shorten the length of your mortgage and lower the total interest paid over the duration of the loan.

Additional One-time payment

It may not be possible for you to pay more every month or even every year. Keep in mind that virtually all mortgage contracts will allow you to pay extra on your principal at any point during repayment. Any time you get some unexpected money, you can use this rule to make an additional one-time payment toward your principal.

For example: several years after moving into your home, you get a very large tax refund,a large legacy, or a non-taxable cash gift; , you could apply a portion of this windfall toward your loan principal, resulting in huge savings and a shorter payback period. For most loans, even this modest amount, paid early in the loan period, could offer huge savings in interest and in the duration of the loan.

1st Credential Mortgage Inc can walk you 1st Credential Mortgage Inc can answer questions about these interest savings and many others. Give us a call: (281) 778-0805.