Mortgage Saving Tips

Making regular additional payments toward the principal balance will provide big returns. Borrowers pay extra in several different ways. For many people,Perhaps the easiest way to organize this process is to make one extra mortgage payment every year. Of course, some folks won't be able to afford such a large extra payment, so dividing one extra payment into 12 extra monthly payments works too. Another popular option is to pay a half payment every two weeks. The result is you will make one additional monthly payment every year. These options differ slightly in lowering the final payback amount and shortening payback length, but each will significantly shorten the length of your mortgage and lower your total interest paid.

Lump Sum Extra Payment

Some borrowers just can't make any extra payments. But it's important to note that most mortgages allow additional payments at any time. You can benefit from this rule to pay extra on your principal when you come into extra money.

Here's an example: five years after buying your home, you get a very large tax refund,a large inheritance, or a cash gift; , you could apply this windfall toward your mortgage loan principal, resulting in huge savings and a shortened loan period. For most loans, even this modest amount, paid early in the loan period, could offer big savings in interest and in the length of the loan.

Creative Mortgage Lenders can walk you At Creative Mortgage Lenders, we answer questions about money-saving strategies every day. Give us a call: 727-822-2222.