Simple Ways to Save Big on Your Mortgage

Making regular extra payments on your principal yields big savings. Borrowers can do this using a few different techniques. For many people,Perhaps the simplest way to organize this process is by making 1 additional mortgage payment every year. If you can't afford to pay an additional whole payment all at once, you can divide that payment by 12 and write a check for that additional amount monthly. Finally, you can pay a half payment every two weeks. These options differ slightly in lowering the final payback amount and shortening payback length, but each will significantly shorten the length of your mortgage and lower the total interest you will pay over the duration of the loan.

One-time Additional Payment

It may not be possible for you to pay down your principal every month or even every year. But it's important to note that most mortgage contracts allow you to make additional principal payments at any time. You can benefit from this provision to pay extra on your principal when you get some extra money.

For example: several years after buying your home, you get a huge tax refund,a large legacy, or a non-taxable cash gift; , paying a few thousand dollars into your home's principal will significantly reduce the repayment duration of your loan and save a huge amount on interest over the life of the loan. Unless the mortgage loan is very large, even a few thousand dollars applied early in the loan period can yield huge benefits over the duration of the loan.

Washingtonian Mortgage, LLC can walk you the mortgage process. Give us a call: 410-451-2755.