Save on your Mortgage

Here's a simple trick to reduce the repayment period of your mortgage and save you thousands of dollars in interest: Make extra payments which are applied toward your principal. Borrowers use different methods to accomplish this goal. Paying 1 additional payment one time every year is probably the simplest to arrange. If you can't pay an additional whole payment in one month, you can divide your payment by 12 and pay that additional amount monthly. Another option is to pay half of your payment every two weeks. The effect here is that you will make one extra monthly payment each year. These options differ a little in lowering the total interest paid and reducing payback length, but they will all significantly reduce the length of your mortgage and lower your total interest paid.

Lump Sum Extra Payment

Some people can't manage any extra payments. Keep in mind that most mortgages will permit you to pay extra on your principal at any point during repayment. Whenever you get some extra money, consider using this rule to make a one-time additional payment toward your principal. If, for example, you were to receive an unexpected windfall just a few years into your mortgage, you could apply this money toward your loan principal, resulting in huge savings and a shortened payback period. For most loans, even a modest amount, paid early in the loan period, could offer big savings in interest and in the duration of the loan.

Washingtonian Mortgage, LLC can walk you Washingtonian Mortgage, LLC has your mortgage answers. Give us a call: 4104512755.