Mortgage Saving

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Paying regular additional payments toward your loan principal can yield enormous savings. You can accomplish this in various ways. Paying 1 extra full payment once per year is perhaps the easiest to keep track of. However, some people will not be able to afford such an enormous additional payment, so splitting an additional payment into twelve additional monthly payments works too. Finally, you can pay a half payment every two weeks. These options differ a little in reducing the total interest paid and reducing payback length, but each will significantly reduce the duration of your mortgage and lower your total interest paid.

Additional One-time payment

It may not be possible for you to pay down your principal every month or even every year. But remember that most mortgage contracts will allow additional payments at any time. You can take advantage of this rule to pay extra on your principal when you come into extra money.

For example: several years after moving into your home, you receive a very large tax refund,a very large inheritance, or a cash gift; , paying a few thousand dollars into your home's principal can significantly shorten the repayment period of your loan and save a huge amount on interest paid over the life of the loan. Unless the loan is quite large, even a few thousand dollars applied early in the loan period can yield huge benefits over the life of the loan.

Commonwealth Mortgage & Investments, Inc. can walk you At Commonwealth Mortgage & Investments, Inc., we answer questions about interest-saving strategies almost every day. Give us a call: 8047689519.