Save Big on your Mortgage

Paying regular additional payments toward the loan principal will yield singificant savings. Borrowers use different methods to meet this goal. Paying a single extra payment one time per year is likely the easiest to keep track of. However, many people can't pull off such a large extra payment, so dividing one extra payment into twelve extra monthly payments is a great option too. Finally, you can pay half of your mortgage payment every other week. Each option yields slightly different results, but they will all significantly shorten the length of your mortgage and lower the total interest paid over the duration of the loan.

Lump-sum Additional Payment

Some people just can't make any extra payments. Keep in mind that most mortgage contracts will permit you to pay extra on your principal at any time. Any time you get some extra money, consider using this provision to pay an additional one-time payment toward principal. For example: five years after buying your home, you get a huge tax refund,a large inheritance, or a cash gift; , you could apply a portion of this money toward your loan principal, which would result in significant savings and a shortened loan period. For most loans, even this relatively modest amount, paid early in the loan period, could offer big savings in interest and in the duration of the loan.

Creative Mortgage Lenders can walk you the mortgage process. Give us a call at 727-822-2222.