Save on your Mortgage Loan

Here's a simple trick to reduce the repayment period of your mortgage and save thousands of dollars over the course of your loan: Make extra payments which go toward your loan principal. People use different methods to meet this goal. For many people,Perhaps the simplest way to keep track is by making 1 extra mortgage payment every year. If you can't pay an extra whole payment in one month, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Another very popular option is to pay half of your payment every other week. The effect here is that you will make one extra monthly payment every year. These options differ a little in lowering the final payback amount and reducing payback length, but they will all significantly reduce the duration of your mortgage and lower your total interest paid.

Lump Sum Extra Payment

Some people just can't make extra payments. But remember that most mortgage contracts allow additional payments at any time. Whenever you come into extra money, consider using this rule to pay a one-time additional payment toward your principal.

Here's an example: several years after buying your home, you receive a larger than expected tax refund,a very large legacy, or a cash gift; , paying several thousand dollars into your home's principal will significantly reduce the repayment period of your loan and save enormously on interest over the life of the loan. For most loans, even a modest amount, paid early in the loan period, could offer huge savings in interest and duration of the loan.

Guaranty Federal Mortgage can walk you through the pitfalls of getting a mortgage. Give us a call: 9723340566.