Mortgage Savings Tips

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Paying consistent extra payments on the loan principal will yield significant returns. You pay more on principal by employing various techniques. Making 1 extra full payment once a year is perhaps the easiest to keep track of. However, some folks won't be able to afford such a large additional payment, so splitting a single extra payment into 12 additional monthly payments is a great option too. Finally, you can commit to paying a half payment every two weeks. Each option yields slightly different results, but each will significantly reduce the duration of your mortgage and lower the total interest paid over the duration of the loan.

Lump Sum Extra Payment

Some folks just can't make any extra payments. Remember that virtually all mortgage contracts will allow you to make additional payments to your principal at any time. Whenever you come into extra money, consider using this provision to make an additional one-time payment toward mortgage principal. Here's an example: several years after buying your home, you get a larger than expected tax refund,a very large legacy, or a cash gift; , investing several thousand dollars into your mortgage principal will significantly reduce the repayment period of your loan and save a huge amount on mortgage interest paid over the life of the loan. Unless the loan is very large, even modest amounts applied early can yield huge savings over the duration of the loan.

Equity Edge Mortgage, Inc. can walk you At Equity Edge Mortgage, Inc., we answer questions about interest-saving strategies every day. Call us at 719-425-2226.

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