Save on your Mortgage
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There's a trick to significantly reduce the length of your mortgage and save you thousands over the course of your loan: Make extra payments which are applied to your loan principal. Borrowers pay extra on principal by employing various techniques. Making a single additional full payment one time every year is probably the easiest to keep track of. 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. Finally, you can commit to paying half of your mortgage payment every other week. These options differ a little in lowering the final payback amount and shortening payback length, but they will all significantly reduce the length of your mortgage and lower your total interest paid.
Lump Sum Extra Payment
It may not be possible for you to pay more every month or even every year. But it's important to note that most mortgage contracts allow you to make additional principal payments at any time. Any time you come into extra cash, consider using this rule to make an additional one-time payment on principal. If, for example, you were to receive a surprise windfall three years into your mortgage, investing several thousand dollars into your home's principal can shorten the duration of your loan and save a huge amount on mortgage interest paid over the duration of the loan. Unless the loan is very large, even modest amounts applied early can produce huge savings over the duration of the loan.
Glendale Mortgage can get you past the pitfalls of getting a mortgage. Give us a call at 610-853-6500.