Simple Ways to Save on Your Mortgage
There's a trick to significantly reduce the length of your mortgage and save thousands in interest: Make additional payments that go to the loan principal. You can do this using a few different techniques. For many people,Perhaps the simplest way to keep track is by making 1 additional payment a year. However, some people will not be able to pull off such a large additional expense, so dividing an extra payment into 12 extra monthly payments is a great option too. Another option is to pay half of your payment every two weeks. The result is you make one extra monthly payment each year. Each of these options yields different results, but they will all significantly shorten the length of your mortgage and lower your total interest paid.
Additional One-time payment
Some people can't manage extra payments. Keep in mind that most mortgage contracts will allow you to pay extra on your principal at any time. You can take advantage of this rule to pay down your mortgage principal any time you get some extra money.
If, for example, you receive an unexpected windfall three years into your mortgage, investing a few thousand dollars into your home's principal will reduce the repayment period of your loan and save a huge amount on mortgage interest over the duration of the mortgage loan. Unless the mortgage loan is very large, even small amounts applied early can produce huge benefits over the life of the loan.
Affinity Mortgage Brokers can walk you the mortgage process. Give us a call at 719-425-2226.