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 that go toward your loan principal. You can accomplish this in several ways. For many people,Perhaps the easiest way to keep track is by making 1 additional payment per year. If you can't afford to pay an additional whole payment all at once, you can divide your payment by 12 and write a check for that additional amount monthly. Another option is to pay a half payment every two weeks. The result is you make one extra monthly payment each year. Each of these options yields slightly different results, but they will all significantly reduce the duration of your mortgage and lower the total interest you will pay over the life of the loan.

One-time Additional Payment

Some borrowers can't manage extra payments. But it's important to note that most mortgage contracts will allow you to make additional payments at any time. You can take advantage of this rule to pay down your mortgage principal when you get some extra money. If, for example, you receive a surprise windfall four years into your mortgage, you could pay this windfall toward your mortgage loan principal, resulting in enormous savings and a shorter payback period. For most loans, even a relatively small amount, paid early enough in the loan period, could offer big savings in interest and in the duration of the loan.

Wisdom Financial, Inc. can walk you through the pitfalls of getting a mortgage. Give us a call at 7084996088.