Simple Ways to Save on Your Mortgage
Paying regular additional payments on the principal yields huge returns. Borrowers can do this in various ways. Making a single additional full payment one time every year is likely the easiest to arrange. If you can't afford to pay an additional whole payment in one month, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Another very popular option is to pay half of your payment every other week. The result is you will make one additional monthly payment each year. These options differ a little in reducing the total interest paid and shortening payback length, but they will all significantly shorten the length of your mortgage and lower your total interest paid.
One-time Additional Payment
It may not be possible for you to pay extra every month or even every year. But it's important to note that most mortgage contracts allow you to make additional payments at any time. Any time you come into unexpected money, you can use this provision to pay a one-time additional payment toward mortgage principal. If, for example, you receive a surprise windfall just a few years into your mortgage, you could pay this money toward your mortgage loan principal, which would result in huge savings and a shorter payback period. Unless the loan is quite large, even a few thousand dollars applied early can produce huge benefits over the duration of the loan.
Affinity Mortgage Brokers can walk you the mortgage process. Give us a call: 719-425-2226.