Simple Ways to Save on Your Mortgage

There's a simple trick to significantly reduce the length of your mortgage and save thousands over the course of your loan: Make extra payments that go toward your principal. Borrowers use different methods to accomplish this goal. Making 1 additional payment one time a year is likely the simplest to arrange. If you can't pay an extra whole payment all at once, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Another very popular option is to pay a half payment every two weeks. The result is you will make one additional monthly payment every year. Each of these options produces different results, but each will significantly reduce the length of your mortgage and lower your total interest paid.

Additional One-time payment

Some folks can't manage extra payments. But remember that most mortgages will allow you to make additional payments at any time. Whenever you get some extra money, you can use this rule to make a one-time additional payment on your mortgage principal.

If, for example, you were to receive a very large gift or tax refund four years into your mortgage, you could apply this windfall toward your mortgage loan principal, resulting in enormous savings and a shorter payback period. Unless the loan is very large, even modest amounts applied early can yield huge benefits over the life of the loan.

AmeriBest Mortgage can walk you AmeriBest Mortgage can answer questions about these interest savings and many others. Give us a call: 3217777277.

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