Save Big on your Mortgage Loan

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There's a simple trick to significantly reduce the length of your mortgage and save thousands in interest: Make additional payments which apply toward the loan principal. Borrowers can pay more on principal by employing various techniques. For many people,Perhaps the simplest way to keep track is to make one extra payment a year. But some people can't swing such a large additional payment, so dividing one additional payment into twelve additional monthly payments is a fine option too. Another popular option is to pay half of your payment every two weeks. The effect here is that you make one extra monthly payment in a year. These options differ slightly in lowering the final payback amount and reducing payback length, but each will significantly reduce the duration of your mortgage and lower the total interest paid over the life of the loan.

Lump-sum Additional Payment

Some borrowers can't manage any extra payments. But you should remember that most mortgages allow you to make additional principal payments at any time. Any time you get some extra cash, consider using this rule to make a one-time additional payment on your mortgage principal. Here's an example: several years after buying your home, you get a huge tax refund,a large inheritance, or a non-taxable cash gift; , investing several thousand dollars into your home's principal will reduce the repayment duration of your loan and save enormously on mortgage interest over the life of the mortgage loan. For most loans, even a relatively modest amount, paid early in the mortgage, could offer huge savings in interest and duration of the loan.

Graystone Mortgage can walk you Graystone Mortgage can answer questions about these interest savings and many others. Call us: (801) 983-8201.