Save on your Mortgage Loan

Here's a simple trick to reduce the repayment period of your mortgage and save you thousands in interest: Make extra payments that apply toward the principal. You pay against principal by employing various techniques. For many people,Perhaps the simplest way to keep track is to make one extra payment a year. If you can't pay an extra whole payment all at once, you can divide your payment by 12 and pay that additional amount monthly. Another very popular option is to pay half of your payment every two weeks. The result is you will make one extra monthly payment every year. These options differ a little in reducing the total interest paid and reducing payback length, but each will significantly reduce the duration of your mortgage and lower your total interest paid.

Lump Sum Extra Payment

Some people can't manage extra payments. But it's important to note that most mortgage contracts allow you to make additional principal payments at any time. You can benefit from this provision to pay extra on your mortgage principal any time you get some extra money. For example: several years after buying your home, you receive a very large tax refund,a large inheritance, or a cash gift; , investing a few thousand dollars into your mortgage principal can shorten the repayment duration of your loan and save a huge amount on interest paid over the life of the mortgage loan. For most loans, even a relatively modest amount, paid early enough in the mortgage, could offer huge savings in interest and duration of the loan.

Wisdom Financial, Inc. can walk you Wisdom Financial, Inc. can answer questions about these interest savings and many others. Call us at 708.499.6088.