Mortgage Saving

Making consistent additional payments on your loan principal can yield singificant savings. You can do this in various ways. Making a single extra full payment one time per year is probably the easiest to arrange. However, some people will not be able to pull off such a large additional payment, so splitting a single extra payment into twelve extra monthly payments works too. Finally, you can pay half of your mortgage payment every other week. Each option produces slightly different results, but they will all significantly reduce the duration of your mortgage and lower the total interest you will pay over the duration of the loan.

Additional One-time payment

Some folks can't manage extra payments. Remember that most mortgages will permit you to pay extra on your principal at any time. Any time you get some extra cash, consider using this rule to pay a one-time additional payment toward principal. If, for example, you receive a large gift or tax refund three years into your mortgage, investing several thousand dollars into your mortgage principal can reduce the repayment duration of your loan and save enormously on interest over the life of the loan. Unless the mortgage loan is quite large, even small amounts applied early in the loan period can yield huge benefits over the life of the loan.

Guaranty Federal Mortgage can walk you Guaranty Federal Mortgage can answer questions about these interest savings and many others. Give us a call at 9723340566.