Big Interest Savings: Available to Anyone with a Mortgage

Here's a simple trick to reduce the repayment period of your mortgage and save you thousands of dollars in interest: Make extra payments that go to your principal. You can pay more on principal in many different ways. Paying 1 additional payment one time every year is perhaps the simplest to track. If you can't pay an additional whole payment all at once, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Another very popular option is to pay half of your payment every other week. The result is you will make one extra monthly payment each 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 just can't make any extra payments. Keep in mind that most mortgage contracts will permit you to pay extra on your principal at any time. You can take advantage of this rule to pay down your principal when you come into extra money.

If, for example, you receive a large gift or tax refund three years into your mortgage, investing several thousand dollars into your home's principal will significantly reduce the period of your loan and save a huge amount on mortgage interest over the duration of the loan. For most loans, even this relatively small amount, paid early in the loan period, could offer big savings in interest and in the length of the loan.

Net Equity Financial Mortgage LLC can walk you through the pitfalls of getting a mortgage. Call us at 2157413131.