Simple Ways to Save on Your Mortgage
Here's a simple trick to significantly reduce the length of your mortgage and save you thousands of dollars in interest: Make extra payments which go toward the loan principal. Borrowers can do this in various ways. For many people,Perhaps the simplest way to keep track is by making 1 extra payment per year. Of course, many folks can't swing such a large extra payment, so dividing one extra payment into twelve additional monthly payments works too. Another very popular option is to pay half of your payment every two weeks. The result is you will make one additional monthly payment every year. These options differ a little in reducing the final payback amount and shortening payback length, but they will all significantly shorten the length 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 almost all mortgage contracts will permit you to make additional payments to your principal at any time. You can take advantage of this provision to pay extra on your mortgage principal when you get some extra money. If, for example, you were to receive a surprise windfall four years into your mortgage, you could pay a portion of this money toward your mortgage loan principal, which would result in significant savings and a shorter loan period. Unless the loan is very large, even a few thousand dollars applied early can produce huge savings over the life of the loan.
F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org) can walk you F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org) has your mortgage answers. Give us a call: 214-300-8756.