Mortgage Savings Tips

Here's a simple trick to significantly reduce the length of your mortgage and save you thousands over the course of your loan: Make additional payments that apply to your principal. Borrowers can accomplish this in various ways. Paying one additional full payment one time every year is probably the easiest to track. If you can't pay an extra whole payment in one month, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can pay half of your mortgage payment every other week. These options differ slightly in lowering the final payback amount and reducing payback length, but each will significantly reduce the length of your mortgage and lower your total interest paid.

Additional One-time payment

It may not be possible for you to pay more every month or even every year. But remember that most mortgage contracts will allow you to make additional payments at any time. You can take advantage of this rule to pay extra on your principal when you get some extra money. If, for example, you were to receive a very large gift or tax refund three years into your mortgage, investing a few thousand dollars into your home's principal will reduce the duration of your loan and save a huge amount on interest over the life of the loan. Unless the mortgage loan is quite large, even modest amounts applied early can produce huge benefits over the life of the loan.

Amity Mortgage LLC can walk you At Amity Mortgage LLC, we answer questions about interest-saving strategies every day. Call us at (203) 729-6681.

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