Mortgage Saving Tips

Making consistent additional payments toward your loan principal will provide enormous savings. You can pay against principal in many different ways. Paying a single additional payment one time a year is likely the simplest to keep track of. However, many people won't be able to afford such a large extra expense, so splitting an additional payment into twelve extra monthly payments works as well. Finally, you can commit to paying a half payment every two weeks. These options differ a little in reducing the final payback amount and reducing payback length, but each will significantly reduce the length of your mortgage and lower your total interest paid.

Lump-sum Additional Payment

Some people just can't make any extra payments. Remember that virtually all mortgages will allow you to pay extra on your principal at any point during repayment. Any time you come into unexpected cash, consider using this rule to pay a one-time additional payment on mortgage principal. If, for example, you were to receive an unexpected windfall just a few years into your mortgage, you could apply this money toward your mortgage loan principal, which would result in enormous savings and a shortened loan period. Unless the mortgage loan is quite large, even a few thousand dollars applied early in the loan period can produce huge benefits over the life of the loan.

Custom Lending Group can walk you At Custom Lending Group, we answer questions about interest-saving strategies every day. Call us at 7072522700.

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