Save on your Mortgage

There's a simple trick to reduce the repayment period of your mortgage and save thousands in interest: Make additional payments which are applied toward the principal. People use different methods to accomplish this goal. Paying 1 additional full payment one time per year is likely the simplest to track. Of course, some folks won't be able to swing such an enormous additional payment, so dividing an additional payment into twelve extra monthly payments is a fine option too. Finally, you can pay a half payment every two weeks. Each option yields slightly different results, but each will significantly shorten the duration of your mortgage and lower your total interest paid.

Lump Sum Extra Payment

It may not be possible for you to pay down your principal every month or even every year. Remember that most mortgage contracts will allow you to pay extra on your principal at any point during repayment. Whenever you get some unexpected money, you can use this rule to pay an additional one-time payment toward principal.

For example: several years after buying your home, you receive a larger than expected tax refund,a large legacy, or a non-taxable 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 over the duration of the mortgage loan. For most loans, even a relatively small amount, paid early enough in the mortgage, could offer big savings in interest and length of the loan.

CHASE MORTGAGE, Inc. #317430 can walk you through the pitfalls of getting a mortgage. Call us at 4357556622.