Simple Ways to Save Big on Your Mortgage

Paying consistent additional payments on your loan principal provides singificant savings. People use different methods to meet this goal. Making a single extra full payment once per year is probably the simplest to arrange. If you can't afford to pay an additional whole payment all at once, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can pay half of your mortgage payment every other week. These options differ a little in reducing the final payback amount and reducing payback length, but each will significantly shorten the duration of your mortgage and lower your total interest paid.

Lump Sum Extra Payment

Some people can't manage extra payments. Keep in mind that virtually all mortgages will permit you to pay extra on your principal at any point during repayment. You can take advantage of this rule to pay extra on your mortgage principal any time you get some extra money. Here's an example: a few years after buying your home, you receive a larger than expected tax refund,a very large legacy, or a cash gift; , you could apply this windfall toward your mortgage loan principal, which would result in huge savings and a shortened payback period. Unless the loan is very large, even modest amounts applied early can produce huge savings over the duration of the loan.

Ameriplus Financial can walk you through the pitfalls of getting a mortgage. Give us a call at 734-737-9600.

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