Save on your Mortgage

Making consistent additional payments on the loan principal will provide big returns. Borrowers pay extra on principal in various ways. Paying one additional payment one time per year is likely the easiest to arrange. But some folks won't be able to swing such an enormous additional payment, so dividing a single additional payment into twelve extra monthly payments is a great option too. Finally, you can commit to paying a half payment every two weeks. Each option yields different results, but they will all significantly shorten the duration of your mortgage and lower your total interest paid.

One-time Additional Payment

It may not be possible for you to pay more every month or even every year. Keep in mind that virtually all mortgage contracts will permit you to pay extra on your principal at any point during repayment. Any time you get some unexpected cash, you can use this rule to pay a one-time additional payment toward mortgage principal. If, for example, you were to receive a very large gift or tax refund three years into your mortgage, you could pay a portion of this money toward your mortgage loan principal, which would result in enormous savings and a shorter loan period. For most loans, even a relatively 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 through the pitfalls of getting a mortgage. Give us a call at 727-822-2222.