Extra Payments Yield Big Savings

There's a trick to significantly reduce the length of your mortgage and save you thousands of dollars in interest: Make additional payments that go toward your principal. You can do this using a few different techniques. Making a single additional payment one time a year is likely the simplest to arrange. But some folks won't be able to afford this huge additional expense, so dividing one additional payment into 12 additional monthly payments is a fine option too. Finally, you can pay a half payment every other week. Each of these options produces different results, but they will all significantly reduce the duration of your mortgage and lower the total interest you will pay over the life of the loan.

Lump Sum Extra Payment

Some folks just can't make any extra payments. Remember that virtually all mortgage contracts will allow you to pay extra on your principal at any point during repayment. You can benefit from this rule to pay down your mortgage principal when you come into extra money.

If, for example, you receive an unexpected windfall four years into your mortgage, you could apply a portion of this windfall toward your loan principal, which would result in enormous savings and a shorter payback period. Unless the loan is quite large, even a few thousand dollars applied early can yield huge savings over the life of the loan.

CHASE MORTGAGE, Inc. #317430 can walk you the mortgage process. Call us at 4357556622.