Big Interest Savings: Available to Anyone with a Mortgage

Here's a simple trick to reduce the repayment period of your mortgage and save you thousands of dollars in interest: Make additional payments that are applied toward the principal. Borrowers pay extra on principal by employing various techniques. Paying one extra full payment once a year is probably the easiest to keep track of. If you can't pay an additional whole payment in one month, you can split that large amount into 12 smaller payments and pay that additional amount monthly. Finally, you can commit to paying a half payment every two weeks. These options differ slightly in reducing the total interest paid and shortening payback length, but they will all significantly reduce the length of your mortgage and lower your total interest paid.

Lump-sum Additional Payment

Some folks just can't make extra payments. Remember that virtually all mortgages will allow you to make additional payments to your principal at any time. Whenever you come into unexpected cash, you can use this provision to make a one-time additional payment on your mortgage principal.

If, for example, you receive a large gift or tax refund five years into your mortgage, investing several thousand dollars into your home's principal will reduce the repayment period of your loan and save a huge amount on mortgage interest over the life of the mortgage loan. For most loans, even this relatively modest amount, paid early in the mortgage, could offer big savings in interest and duration of the loan.

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