Save Big on your Mortgage Loan

Here's a simple trick to reduce the repayment period of your mortgage and save you thousands of dollars over the course of your loan: Make extra payments which apply toward the loan principal. People make this happen in several ways. For many people,Perhaps the simplest way to keep track is by making one additional payment per year. But many folks won't be able to afford such a large extra expense, so dividing a single extra payment into 12 additional monthly payments works as well. Finally, you can commit to paying a half payment every two weeks. Each of these options yields different results, but each will significantly reduce the length of your mortgage and lower the total interest paid over the life of the loan.

Lump Sum Extra Payment

It may not be possible for you to pay more every month or even every year. Remember that most mortgage contracts will allow you to pay extra on your principal at any time. You can take advantage of this provision to pay extra on your principal when you get some extra money.

Here's an example: five years after moving into your home, you receive a larger than expected tax refund,a large inheritance, or a non-taxable cash gift; , you could apply this money toward your mortgage loan principal, which would result in enormous savings and a shortened loan period. Unless the loan is very large, even small amounts applied early can produce huge benefits over the life of the loan.

Sky Apply Mortgage, Inc can walk you the mortgage process. Give us a call: (813) 200-7931.

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