Simple Ways to Save Big on Your Mortgage

Here's a simple trick to reduce the repayment period of your mortgage and save you thousands of dollars over the course of your loan: Make extra payments that are applied to the principal. Borrowers pay extra in several ways. Making a single additional payment once a year is perhaps the easiest to track. But many people will not be able to pull off such an enormous extra payment, so dividing a single additional payment into twelve additional monthly payments is a fine option too. Finally, you can commit to paying half of your mortgage payment every two weeks. These options differ a little in reducing the total interest paid and shortening payback length, but each will significantly reduce the length of your mortgage and lower your total interest paid.

Lump Sum Extra Payment

It may not be possible for you to pay down your principal every month or even every year. Keep in mind that almost all mortgage contracts will permit you to make additional payments to your principal at any time. Any time you get some extra money, consider using this rule to pay an additional one-time payment on your mortgage principal. Here's an example: five years after moving into your home, you receive a very large tax refund,a very large legacy, or a cash gift; , investing several thousand dollars into your home's principal will shorten the period of your loan and save a huge amount on mortgage interest paid over the life of the loan. Unless the mortgage loan is very large, even small amounts applied early can yield huge benefits over the duration of the loan.

Price Mortgage Group LLC can walk you Price Mortgage Group LLC has your mortgage answers. Call us at 405-513-7700.

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