Save Big on your Mortgage

Paying regular extra payments toward your principal balance will provide big returns. You pay against principal in various ways. For many people,Perhaps the easiest way to organize this process is by making one extra mortgage payment per year. If you can't pay an additional whole payment all at once, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Another option is to pay half of your payment every other week. The result is you will make one additional monthly payment every year. These options differ slightly in lowering the final payback amount and shortening payback length, 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

It may not be possible for you to pay extra every month or even every year. Remember that most mortgages will allow you to make additional payments to your principal at any time. You can take advantage of this provision to pay extra on your mortgage principal when you come into extra money.

For example: a few years after moving into your home, you receive a huge tax refund,a large inheritance, or a cash gift; , paying several thousand dollars into your mortgage principal can significantly shorten the repayment period of your loan and save a huge amount on interest paid over the life of the loan. For most loans, even this relatively modest amount, paid early enough in the mortgage, could offer big savings in interest and length of the loan.

Washingtonian Mortgage, LLC can walk you the mortgage process. Call us at 410-451-2755.