Simple Ways to Save on Your Mortgage

Making regular additional payments toward your loan principal will provide enormous returns. You can do this in various ways. Making a single additional full payment once per year is probably the easiest to arrange. If you can't pay an extra whole payment in one month, you can divide your payment by 12 and pay that additional amount monthly. Another very popular option is to pay half of your payment every other week. The result is you make one extra monthly payment in a year. Each of these options yields different results, but each will significantly shorten the duration of your mortgage and lower your total interest paid.

Lump Sum Extra Payment

Some borrowers can't manage any extra payments. Keep in mind that virtually all mortgages will permit you to make additional payments to your principal at any point during repayment. Whenever you come into unexpected money, you can use this rule to pay an additional one-time payment toward your principal. For example: five years after moving into your home, you receive a very large tax refund,a large legacy, or a cash gift; , you could apply a portion of this money toward your mortgage loan principal, which would result in significant savings and a shortened payback period. Unless the loan is quite large, even modest amounts applied early in the loan period can produce huge benefits over the life of the loan.

First Access Mortgage can walk you At First Access Mortgage, we answer questions about money-saving strategies every day. Give us a call: (985) 429-1770.

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