Simple Ways to Save Big on Your Mortgage
There's a simple trick to significantly reduce the length of your mortgage and save thousands of dollars over the course of your loan: Make extra payments which apply to your loan principal. You can pay more on principal by employing various techniques. For many people,Perhaps the easiest way to keep track is by making one additional payment a year. However, many folks won't be able to afford such a large additional expense, so dividing one extra payment into twelve extra monthly payments works as well. Another option is to pay half of your payment every two weeks. The effect here is that you will make one additional monthly payment in a year. Each of these options yields slightly different results, but each will significantly reduce the length of your mortgage and lower your total interest paid.
Additional One-time payment
Some borrowers can't manage extra payments. But you should remember that most mortgages will allow you to make additional payments at any time. Whenever you get some unexpected money, consider using this rule to pay a one-time additional payment toward your mortgage principal. For example: a few years after buying your home, you receive a huge tax refund,a large inheritance, or a non-taxable cash gift; , you could pay a portion of this windfall toward your loan principal, resulting in enormous savings and a shorter payback period. For most loans, even this modest amount, paid early in the loan period, could offer huge savings in interest and duration of the loan.
Ward Kilduff Mortgage can walk you the mortgage process. Give us a call at (860) 658-7100.
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