Mortgage Saving

Here's a simple trick to significantly reduce the length of your mortgage and save you thousands in interest: Make additional payments which apply to the loan principal. People pay extra in several ways. For many people,Perhaps the easiest way to keep track is to make one extra mortgage payment per year. But many folks won't be able to afford this huge extra expense, so dividing an additional payment into twelve additional monthly payments works too. Finally, you can commit to paying half of your mortgage payment every two weeks. Each of these options produces different results, but they will all significantly shorten the duration of your mortgage and lower the total interest you will pay over the life of the loan.

Lump-sum Additional Payment

Some folks just can't make extra payments. But it's important to note that most mortgages will allow you to make additional principal payments at any time. Any time you get some unexpected cash, consider using this rule to make a one-time additional payment on principal. For example: five years after buying your home, you get a larger than expected tax refund,a very large inheritance, or a cash gift; , investing several thousand dollars into your mortgage principal will shorten the period of your loan and save enormously on mortgage interest over the duration of the loan. For most loans, even a modest amount, paid early enough in the mortgage, could offer huge savings in interest and length of the loan.

Guaranty Federal Mortgage can walk you the mortgage process. Give us a call: 9723340566.