Save on your Mortgage

There's a trick to reduce the repayment period of your mortgage and save thousands over the course of your loan: Make extra payments that go toward your principal. People employ various techniques to accomplish this goal. For many people,Perhaps the easiest way to keep track is by making one extra payment a year. If you can't pay an extra whole payment all at once, you can divide that payment by 12 and pay that additional amount monthly. Another popular option is to pay a half payment every other week. The result is you will make one extra monthly payment each year. These options differ slightly in lowering the total interest paid and reducing payback length, but each will significantly shorten the length of your mortgage and lower the total interest paid over the life of the loan.

Lump Sum Extra Payment

It may not be possible for you to pay extra every month or even every year. Keep in mind that virtually all mortgages will permit you to make additional payments to your principal at any time. You can take advantage of this rule to pay down your principal any time you get some extra money.

Here's an example: several years after moving into your home, you get a very large tax refund,a large legacy, or a cash gift; , investing several thousand dollars into your mortgage principal will reduce the repayment period of your loan and save enormously on interest paid over the duration of the mortgage loan. Unless the loan is very large, even a few thousand dollars applied early in the loan period can yield huge benefits over the life of the loan.

HT Lending Group, LLC can walk you At HT Lending Group, LLC, we answer questions about interest-saving strategies every day. Give us a call: 817-431-8618.

Mortgage Questions?

Do you have a question regarding a mortgage program?

Contact Information
Your Question