Save on Your Mortgage

There's a simple trick to significantly reduce the length of your mortgage and save thousands of dollars in interest: Make additional payments that apply to your loan principal. Borrowers make this happen in a few different ways. For many people,Perhaps the simplest way to keep track is to make one additional mortgage payment every year. If you can't afford to pay an additional whole payment in one month, you can divide your payment by 12 and write a check for that additional amount monthly. Another popular option is to pay a half payment every two weeks. The result is you make one extra monthly payment each year. Each of these options produces different results, but they will all significantly shorten the duration of your mortgage and lower the total interest you will pay over the life of the loan.

Additional One-time payment

Some people can't manage extra payments. Keep in mind that most mortgage contracts will allow you to pay extra on your principal at any time. Whenever you come into unexpected cash, you can use this provision to make an additional one-time payment toward your mortgage principal.

Here's an example: five years after moving into your home, you get a very large tax refund,a very large legacy, or a non-taxable cash gift; , you could pay a portion of this windfall toward your loan principal, resulting in significant savings and a shorter loan period. For most loans, even a small amount, paid early in the loan period, could offer big savings in interest and in the duration of the loan.

1st Credential Mortgage Inc can walk you the mortgage process. Call us at 2817780805.