Simple Ways to Save on Your Mortgage

Paying consistent extra payments on the loan principal yields huge returns. Borrowers can do this in various ways. Paying 1 additional full payment once per year is likely the simplest to keep track of. Of course, many folks will not be able to swing such an enormous extra expense, so splitting a single additional payment into 12 additional monthly payments works too. Finally, you can commit to paying half of your mortgage payment every other week. Each of these options produces different results, but they will all significantly shorten the duration of your mortgage and lower the total interest you will pay over the duration of the loan.

Lump Sum Extra Payment

Some folks can't manage any extra payments. Remember that most mortgages will permit you to make additional payments to your principal at any time. You can take advantage of this rule to pay extra on your mortgage principal when you come into extra money. Here's an example: several years after moving into your home, you get a very large tax refund,a large legacy, or a non-taxable cash gift; , paying several thousand dollars into your home's principal will shorten the repayment duration of your loan and save a huge amount on mortgage interest paid over the duration of the mortgage loan. For most loans, even this relatively small amount, paid early enough in the loan period, could offer big savings in interest and length of the loan.

The Lending Source can walk you At The Lending Source, we answer questions about money-saving strategies every day. Call us: (973) 601-2122.

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