Simple Ways to Save on Your Mortgage

Making consistent additional payments on the loan principal yields big returns. Borrowers make this happen in a few different ways. For many people,Perhaps the easiest way to organize this process is by making 1 extra mortgage payment a year. If you can't pay an additional whole payment in one month, you can split that large amount into 12 smaller payments and write a check for that additional amount monthly. Finally, you can commit to paying half of your mortgage payment every two weeks. These options differ slightly in reducing the total interest paid and reducing payback length, but they will all significantly shorten the length of your mortgage and lower the total interest you will pay over the duration of the loan.

Lump Sum Extra Payment

It may not be possible for you to pay more every month or even every year. But it's important to note that most mortgages allow additional payments at any time. Whenever you get some extra cash, consider using this rule to pay an additional one-time payment on your mortgage principal.

For example: several years after moving into your home, you receive a very large tax refund,a very large legacy, or a cash gift; , you could pay this money toward your loan principal, which would result in enormous savings and a shortened payback period. For most loans, even this small amount, paid early in the mortgage, could offer big savings in interest and in the length of the loan.

Southwest Funding #841
Company NMLS # 303440 can walk you At Southwest Funding #841
Company NMLS # 303440, we answer questions about interest-saving strategies every day. Give us a call: 5122916100.