Simple Ways to Save on Your Mortgage

Making regular additional payments on the loan principal provides enormous returns. People accomplish this goal in several ways. Making a single additional full payment once a year is probably the easiest to track. Of course, some folks can't pull off such a large extra payment, so splitting a single extra payment into twelve extra monthly payments works as well. Finally, you can commit to paying a half payment every two weeks. These options differ slightly in lowering the total interest paid and shortening payback length, but each will significantly reduce the duration of your mortgage and lower your total interest paid.

Lump-sum Additional Payment

It may not be possible for you to pay more every month or even every year. Keep in mind that almost all mortgage contracts will permit you to pay extra on your principal at any point during repayment. You can benefit from this rule to pay down your principal any time you get some extra money. Here's an example: a few years after buying your home, you get a huge tax refund,a large legacy, or a non-taxable cash gift; , investing several thousand dollars into your mortgage principal can reduce the repayment period of your loan and save enormously on interest over the duration of the mortgage loan. For most loans, even a small amount, paid early enough in the mortgage, could offer big savings in interest and length of the loan.

Price Mortgage Group LLC can walk you through the pitfalls of getting a mortgage. Give us a call at 405-513-7700.

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