Simple Ways to Save Big on Your Mortgage

Paying consistent additional payments toward the loan principal provides singificant returns. Borrowers make this happen in several different ways. For many people,Perhaps the simplest way to organize this process is to make one extra mortgage payment per year. If you can't pay an extra whole payment in one month, you can divide that payment by 12 and pay that additional amount monthly. Finally, you can pay a half payment every two weeks. These options differ a little in reducing the final payback amount and shortening payback length, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.

Lump-sum Additional Payment

It may not be possible for you to pay extra every month or even every year. Keep in mind that almost all mortgages will permit you to make additional payments to your principal at any time. You can benefit from this provision to pay extra on your principal any time you get some extra money.

For example: a few years after buying your home, you receive a very large tax refund,a large inheritance, or a non-taxable cash gift; , paying a few thousand dollars into your mortgage principal will significantly shorten the repayment period of your loan and save enormously on mortgage interest paid over the duration of the loan. Unless the mortgage loan is quite large, even a few thousand dollars applied early in the loan period can produce huge savings over the life of the loan.

Sky Apply Mortgage, Inc can walk you through the pitfalls of getting a mortgage. Give us a call: 8132007931.