Additional Payments Yield Big Savings

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There's a trick to reduce the repayment period of your mortgage and save you thousands of dollars over the course of your loan: Make additional payments that apply to the loan principal. You pay more on principal in various ways. For many people,Perhaps the easiest way to keep track is to make one additional payment per year. However, many folks can't pull off this huge extra expense, so dividing one extra payment into twelve extra monthly payments is a fine option too. Finally, you can pay half of your mortgage payment every two weeks. Each of these options yields different results, but each will significantly reduce the duration 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. But remember that most mortgages allow additional payments at any time. Whenever you get some unexpected money, consider using this provision to make an additional one-time payment toward your principal.

For example: a few years after moving into your home, you receive a huge tax refund,a very large inheritance, or a non-taxable cash gift; , paying several thousand dollars into your mortgage principal will significantly shorten the duration of your loan and save a huge amount on interest over the life of the mortgage loan. For most loans, even a relatively small amount, paid early in the mortgage, could offer huge savings in interest and in the duration of the loan.

Main Line National Mtg Inc can walk you the mortgage process. Call us: (610) 296-3600.