Simple Ways to Save on Your Mortgage
Here's a simple trick to significantly reduce the length of your mortgage and save you thousands in interest: Make additional payments that apply to the principal. Borrowers use different methods to meet this goal. Paying 1 extra full payment once every year is probably the easiest to track. Of course, many people can't pull off this huge additional expense, so splitting one additional payment into 12 extra monthly payments is a great option too. Another option is to pay half of your payment every other week. The effect here is that you make one additional monthly payment every year. Each of these options produces different results, but they will all 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. Remember that virtually all mortgage contracts will allow you to pay extra on your principal at any point during repayment. Whenever you come into extra cash, you can use this rule to pay a one-time additional payment toward principal. If, for example, you were to receive a large gift or tax refund just a few years into your mortgage, paying a few thousand dollars into your mortgage principal can shorten the duration of your loan and save enormously on mortgage interest over the duration of the loan. Unless the loan is very large, even a few thousand dollars applied early can yield huge benefits over the life of the loan.
Coleman Mortgage Company can walk you At Coleman Mortgage Company, we answer questions about interest-saving strategies almost every day. Call us: 972-932-9083.