Simple Ways to Save on Your Mortgage
Paying consistent extra payments on the loan principal will yield huge savings. People use different methods to accomplish this goal. Making 1 additional full payment once every year is perhaps the easiest to keep track of. However, many people will not be able to swing this huge additional expense, so dividing one additional payment into 12 extra monthly payments works as well. Finally, you can pay a half payment every other week. Each of these options yields different results, but they will all significantly reduce the duration of your mortgage and lower the total interest paid over the duration of the loan.
One-time Additional Payment
Some people can't manage extra payments. But remember that most mortgage contracts allow you to make additional payments at any time. You can benefit from this rule to pay extra on your mortgage principal any time you come into extra money.
For example: several years after moving into your home, you get a huge tax refund,a very large inheritance, or a non-taxable cash gift; , paying a few thousand dollars into your home's principal can significantly reduce the duration of your loan and save a huge amount on mortgage interest over the duration of the loan. For most loans, even a small amount, paid early enough in the mortgage, could offer big savings in interest and in the duration of the loan.
F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org) can walk you F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org) can answer questions about these interest savings and many others. Call us at 214-300-8756.