Save Big on your Mortgage Loan

Making regular extra payments on your principal balance will yield huge savings. Borrowers can pay extra on principal in various ways. For many people,Perhaps the easiest way to organize this process is to make 1 extra mortgage payment every year. Of course, many people won't be able to afford such a large additional expense, so dividing an extra payment into twelve additional monthly payments is a fine option too. Another option is to pay half of your payment every two weeks. The result is you will make one extra monthly payment in a year. These options differ slightly in reducing the total interest paid and reducing payback length, but they will all significantly reduce the length of your mortgage and lower the total interest paid over the duration of the loan.

Lump Sum Extra Payment

Some borrowers just can't make any extra payments. But it's important to note that most mortgages allow you to make additional principal payments at any time. Any time you come into extra money, consider using this rule to make a one-time additional payment on your mortgage principal.

If, for example, you were to receive a surprise windfall just a few years into your mortgage, investing several thousand dollars into your home's principal will significantly reduce the period of your loan and save a huge amount on interest paid over the life of the mortgage loan. For most loans, even a relatively small amount, paid early enough in the mortgage, could offer big savings in interest and in the duration of the loan.

Savers Home Loans can walk you Savers Home Loans can answer questions about these interest savings and many others. Give us a call: (800) 974-0509.